Students can Download Accountancy Chapter 1 Introduction to Accounting Questions and Answers, Notes Pdf, Samacheer Kalvi 11th Accountancy Book Solutions Guide Pdf helps you to revise the complete Tamilnadu State Board New Syllabus and score more marks in your examinations.
Tamilnadu Samacheer Kalvi 11th Accountancy Solutions Chapter 1 Introduction to Accounting
Samacheer Kalvi 11th Accountancy Introduction to Accounting Text Book Back Questions and Answers
I. Multiple Choice Questions
Choose the Correct Answer
Samacheer Kalvi Guru 11th Accountancy Question 1.
The root of financial accounting system is ……………..
(a) Social accounting
(b) Stewardship accounting
(c) Management accounting
(d) Responsibility accounting
Answer:
(b) Stewardship accounting
11th Accountancy Chapter 1 Question 2.
Which one of the following is not a main objective of accounting?
(a) Systematic recording of transactions
(b) Ascertainment of the profitability of the business
(c) Ascertainment of the financial position of the business
(d) Solving tax disputes with tax authorities
Answer:
(d) Solving tax disputes with tax authorities
Samacheer Kalvi 11th Accountancy Guide Question 3.
Which one of the following is “hot a branch of accounting?
(a) Financial accounting
(b) Management accounting
(c) Human resources accounting
(d) None of the above
Answer:
(d) None of the above
11th Accountancy Solutions Samacheer Kalvi Question 4.
Financial position of a business is ascertained on the basis of ……………..
(a) Journal
(b) Trial balance
(c) Balance Sheet
(d) Ledger
Answer:
(c) Balance Sheet
11th Accountancy Samacheer Kalvi Question 5.
Who is considered to be the internal user of the financial information?
(a) Creditor
(b) Employee
(c) Customer
(d) Government
Answer:
(b) Employee
II. Very Short Answer Questions
Samacheer Kalvi 11th Accountancy Question 1.
Define accounting.
Answer:
According to the American Institute of Certified Public Accountants “Accounting is the art of recording, classifying and summarising in a significant manner and in terms of money, transactions and events which are in part, at least of a financial character and interpreting the results thereof’.
11th Accountancy Chapter 1 Book Back Answers Question 2.
List any two functions of accounting.
Answer:
The main functions of accounting:
- Measurement
- Forecasting
1. Measurement: The main function of accounting is to keep systematic record of transactions, post them in the ledger and ultimately prepare the final accounts.
2. Forecasting: With the help of the various tools of accounting, future performance and financial position of the business enterprises can be forecasted.
Samacheer Kalvi Accountancy 11th Question 3.
What are the steps involved in the process of accounting?
Answer:
Accounting is the systematic process of identifying, measuring, recording, classifying, summarising, interpreting and communicating financial information.
Samacheer Kalvi 11th Accounts Question 4.
Who are the parties interested in accounting information?
Answer:
- Internal users: Owners, Management and Employees.
- External users: Creditors, Investors, Customers, Tax authorities, Government, Researchers and General Public.
Samacheer Kalvi 11th Accountancy Solutions Question 5.
Name any two basis of recording accounting information.
Answer:
There are three basis of accounting in common usage.
- Cash basis
- Accrual or mercantile basis
III. Short Answer Questions
Samacheer Kalvi Guru 11 Accountancy Question 1.
Explain the meaning of accounting.
Answer:
Accounting is the systematic process of identifying, measuring, recording, classifying, summarizing, interpreting and communicating financial information. Accounting gives information on:
- The resources are available.
- How the available resources have been employed and
- The results achieved by their use.
11th Accounts Chapter 1 Question 2.
Discuss briefly the branches of accounting.
Answer:
The main branches of accounting are:
1. Financial Accounting: It involves recording financial transactions and events.
2. Cost Accounting: It involves the collection, recording, classification, and appropriate allocation of expenditure for the determination of the costs of products or services and for the presentation of data for the purpose of cost control and managerial decision making.
3. Management Accounting: It is concerned with the presentation of accounting information in such a way as to assist management in decision making and in the day-to-day operations of an enterprise.
4. Social Responsibility Accounting: It is concerned with the presentation of accounting information by business entities and other organizations from the viewpoint of the society by showing the social costs incurred such as environmental pollution by the enterprise and social benefits such as infrastructure development and employment opportunities created by them.
5. It is concerned with the identification, quantification and reporting of investments made in human resources of an enterprise.
Samacheer Kalvi 11th Accountancy Book Solutions Question 3.
Discuss in detail the importance of accounting.
Answer:
The importance of accounting is:
1. Systematic records: All the transactions of an enterprise which are financial in nature are recorded in a systematic way in the books of accounts.
2. Preparation of financial statements: Results of business operations and the financial position of the concern can be ascertained from accounting periodically through the preparation of financial statements.
3. Assessment of progress: Analysis and interpretation of financial data can be done to assess the progress made in different areas and to identify the areas of weaknesses.
4. Aid to decision making: Management of a firm has to make routine and strategic decisions while discharging its functions.
5. Satisfies legal requirements: Various legal requirements like maintenance of provident fund (PF) for employees, Tax deducted at source (TOS), filing of tax returns and properly fulfilled with the help of accounting.
6. Information to interested groups: Accounting supplies appropriate information to different interested groups like owners, management, creditors, employees, financial institutions, tax authorities and the Government.
7. Legal evidence: Accounting records are generally accepted as evidence in courts of law and other legal authorities in the settlement of disputes.
8. Computation of tax: Accounting records are the basic source for computation and settlement of income tax and other taxes.
9. Settlement during mergers: When two or more business units decide to merge, accounting records provide information for deciding the terms of merger and any compensation payable as a consequence of merges.
11th Accountancy Samacheer Question 4.
Why are the following parties interested in accounting information?
- Investors
- Government
Answer:
1. Investors:
An investor is a person who is interested in investing their funds in an organization. They are the persons in need of the financial situation of the concern. They are more concerned about future earnings and risk-bearing capacity of the organization which will affect the return to the investors.
2. Government:
The scarce resources of the country are used by business enterprises. The government also administers the prices of certain commodities. In such cases, government agencies have to ensure that the guidelines for pricing are followed.
11 Accountancy Book Answers Question 5.
Discuss the role of an accountant in the modem business world.
Answer:
Recordkeeper:
The accountant maintains a systematic record of financial transactions. He also prepares the financial statements and other financial reports.
Provider of information to the management:
The accountant assists the management by providing financial information required for decision-making and for exercising control.
Protector of business assets:
The accountant maintains records of assets owned by the business which enables the management to protect and exercise control over these assets. He advises the management about insurance of various assets and the maintenance of the same.
Financial advisor:
The accountant analyses financial information and advises the business managers regarding opportunities, strategies for cost savings, capital budgeting, provision for future growth and development, expansion of the enterprise, etc.
Tax manager:
The accountant ensures that tax returns are prepared and filed correctly on time and payment of tax is made on time. The accountant can advise the managers regarding tax management, reducing tax burden, availing tax exemptions, etc.
Public relation officer:
The accountant provides accounting information to various interested users for analysis as per their requirements.
Textbook Case Study Solved
Account 11th 1st Chapter Question 1.
How do SHGs maintain their accounting?
Answer:
They are maintaining single-entry systems, so the cash book and personal accounts are being maintained by them. The nominal accounts are not being maintained by them, so we can not find out the accurate profit or loss on the business. We can find out the estimated value only.
11th Accounts 1st Chapter Question 2.
Do you think that a financial accounting system is suitable for all businesses?
Answer:
This system is not suitable for all businesses because the actual profit or loss cannot be found out by this system. If it is a small business only then we can follow this system.
Samacheer Kalvi 11th Accountancy Introduction to Accounting Additional Questions and Answers
I. Multiple Choice Questions
Choose the correct answer
Samacheer Kalvi 11th Accountancy Book Pdf Question 1.
The incomplete system of accounting is …………….
(a) Double Entry system
(b) Single Entry system
(c) Double account system
(d) none
Answer:
(b) Single Entry system
11th Accounts Samacheer Kalvi Solutions Question 2.
Who is considered to be the external user of the financial information?
(a) Employee
(b) Owners
(c) Management
(d) Creditor
Answer:
(d) Creditors
11 Samacheer Accountancy Solutions Question 3.
Business transactions may be classified into …………….
(a) One
(b) Two
(c) Three
(d) Four
Answer:
(b) Two
Introduction To Accounting Questions And Answers Question 4.
The first step of the accounting cycle.
(a) Transactions
(b) Journlising
(c) Profit & loss account
(d) Trading account
Answer:
(a) Transactions
Accountancy Book Class 11 Samacheer Kalvi Question 5.
Unsold stock lying in a business on a particular date are known as …………….
(a) Sales
(b) Loss
(c) Cash
(d) Stock
Answer:
(d) Stock
Accountancy Class 11 Pdf Samacheer Kalvi Question 6.
……………… is the language of business.
(a) Accounting
(b) Bookkeeping
(c) Trade
(d) Banking
Answer:
(a) Accounting
11th Accountancy Guide Samacheer Kalvi Question 7.
Withdrawn from the business by the owner for personal use is called …………..
(a) Capital
(b) Drawings
(c) Purchases
(d) Sales
Answer:
(b) Drawings
Question 8.
Transferring the entries from the journal to the ledger ……………….
(a) Posting
(b) Journal
(c) Ledger
(d) Transaction
Answer:
(a) Posting
Question 9.
An activity which involves transfer of money or money’s worth from one person to another person is called as ……………
(a) Transactions
(b) Assets
(c) Liabilities
(d) Capital
Answer:
(a) Transactions
Question 10.
A statement showing the balances of assets and liabilities is called as ……………….
(a) Profit & loss A/c
(b) Trading A/c
(c) Balance sheet
(d) Final A/c
Answer:
(c) Balance sheet
Question 11.
……………… developed double-entry bookkeeping system.
(a) Luca Pacioli
(b) Kautilya
(c) Philip Kotler
(d) None of the above
Answer:
(a) Luca Pacioli
Question 12.
………………. is irrecoverable debt ……………….
(a) debtor
(b) creditor
(c) bad debt
(d) loan
Answer:
(c) bad debt
Question 13.
The amount invested by the owner in the business is called …………….
(a) Capital
(b) Drawings
(c) Purchases
(d) Sales
Answer:
(a) Capital
Question 14.
………………. is the incapability of a person or enterprises to pay the debts
(a) Asset
(b) Liability
(c) Insolvency
(d) Sales
Answer:
(c) Insolvency
Question 15.
Records of debit and credit were found in ……………
(a) 15th Century
(b) 13th Century
(c) 12th Century
(d) 20th Century
Answer:
(b) 13th Century
II. Very Short Answer Questions
Question 1.
What do you mean by Transaction?
Answer:
A business activity involves the transfer of money or money’s worth (goods, services, ideas) from one person to another person.
Question 2.
Who are researchers?
Answer:
Researchers who carry out their research can use accounting information and make use of the published financial statements for analysis and evaluation.
Question 3.
Who is Public Relation Officer? (PRO)
Answer:
The accountant provides accounting information to various interested users for analysis as per their requirements.
Question 4.
What do you mean by legal evidence?
Answer:
Accounting records are generally accepted as evidence in courts of law and other legal authorities in the settlement of disputes.
Question 5.
Who is a creditor of business?
Answer:
Depreciation refers to the decrease in the value of fixed assets due to usage and passage of time.
Question 6.
What is a bad debt?
Answer:
It is a loss to the business arising out of the failure of a debtor to pay the dues. It is irrecoverable debt.
Question 7.
What is capital?
Answer:
It is the amount invested by the owner or proprietor in an organization.
Question 8.
What are drawings?
Answer:
It is the amount of cash or value of goods, assets, etc., withdrawn from the business by the owner for the personal use of the owner.
Question 9.
What is a voucher?
Answer:
Any written or printed document in support of a business transaction is called a voucher.
Question 10.
What do you mean by accounting cycle?
Answer:
An accounting cycle is a complete sequence of the accounting processes, that begins with the recording of business transactions and ends with the preparation of final accounts.
III. Short Answer Questions
Question 1.
Write a note on
- Debtor
- Creditor
Answer:
- Debtor: A person who receives a benefit without giving money or money’s worth immediately, but liable to pay in the future or in due course of time.
- Creditor: A person who gives a benefit without receiving money or money’s worth immediately but to claim in the future.
Question 2.
Write a note on
- Purchases
- Sales.
Answer:
- Purchases: Buying goods with the intention of resale is called purchase.
- Sales: When goods meant for resale are sold, it is called sales.
Question 3.
Explain the Objectives of Accounting.
Answer:
Following are the objectives of accounting:
- To keep a systematic record of financial transactions and events
- To ascertain the profit or loss of the business enterprise
- To ascertain the financial position or status of the enterprise
- To provide information to various stakeholders for their requirement
- To protect the properties of an enterprise and
- To ascertain the solvency and liquidity position of an enterprise.
Question 4.
What is the difference between vouchers and invoices?
Answer:
Voucher:
Any written or printed document in support of a business transaction is called a voucher. Examples: cash receipts, bank pay-in-slip, etc.
Invoice:
It is a statement prepared by a seller of goods to be sent to the buyer. It shows details of quantity, price, value, etc., of the goods and any discount, is given, finally showing the net amount payable by the buyer.