Assignment(2015-2016) -Class XI - Introduction to Accounting and Basic Accounting Terms

1. The definition of accounting brings to light various attributes of accounting. In context to this, define accounting and discuss any four attributes of accounting.

2. What is an Accounting Cycle? List the sequential steps in an Accounting Cycle.

3. ‘Accounting Information should be comparable.’ Do you agree with this statement? Give two reasons.

4. These are various numbers of functions performed by accounting. Describe any three such functions.

5. Do you agree with the statement: ‘recording of financial transactions and preparing the financial statements is the only objectives of accounting’?

6. Appointment of a new managing director is not recorded in the books of accounts. Why?

7. Users of accounting information are categorized into internal and external users. State and explain any four external users and their information needs.

8. Accounting has many benefits associated with it. In context to this, discuss any six advantages of accounting.

9. Giving examples, explain each of the following accounting terms.

(i) Non Current Liability                                 (vii) Deferred revenue expenditure

(ii) Gain                                                                                (viii) Prepaid Expense

(iii) Profit                                                             (ix) Liability

(iv)Revenue                                                       (x) Intangible Assets

(v)Expenses

(vi)Capital

10. What is the primary reason for business students and others to study accounting discipline?

11. Briefly explain ‘window dressing’ as a limitation of accounting. Also throw light on the following statement “the role of accounting has changed over the period of time.’”

12. Is the basic objective of book-keeping to maintain systematic records or to ascertain net results of operations of financial transactions?

13. Define the role of accounting in the modern world.

14. Enlist the differences between book keeping, accounting and accountancy?

15. State true or false giving reason:

1. Accounting can be viewed as an information system which has its inputs, processing methods and outputs.

2. Amount owed to outsiders (other than proprietor) is called capital.

3. Lenders are internal users of accounting.

4. Protecting the business assets of a firm is not an objective of accounting.