Class 11 Account theory very short model questions and their solutions (Set2)

1.  what is book keeping?

Bookkeeping is the systematic recording and organizing of financial transactions for businesses or individuals, ensuring accurate financial records and enabling informed decision-making.

2. Mention any two objective of accounting.

1. Accurate recording and measurement of financial transactions.
2. Effective communication of financial information to stakeholders.

3. Write the meaning of money measuring concept.

The money measuring concept in accounting means that all financial transactions are recorded and reported using a specific currency, like dollars or euros, to make it easier to understand and compare the financial information.

4. Define trial balance

Trial balance is a list of all the account balances in a business, showing the total debits and credits, used to check if they are in balance before preparing financial statements.

5. What is cross cheque?

A cross cheque is a type of cheque that can only be deposited into a bank account and cannot be cashed over the counter.

6. Write about error of principle.

Error of principle is when a transaction is recorded in a way that goes against accounting principles, resulting in an inaccurate representation of financial information.

7. What is reserve?

Reserve refers to funds set aside for specific purposes or contingencies, providing a financial cushion or support for future needs.

8. Write different between capital expenditure and revenue expenditure.

Capital Expenditure:

• Incurred for acquiring or improving long-term assets.
• Recorded as an asset on the balance sheet.
• Benefits realized over a long period.
• Subject to depreciation or amortization.

Revenue Expenditure:

• Incurred for day-to-day operational expenses.
• Expensed immediately on the income statement.
• Benefits realized in the short term.
• Does not result in the acquisition of long-term assets.

9. What is Treasury single account (TSA) ? Write its uses in government office.

The Treasury Single Account (TSA) is a centralized bank account system used by governments to consolidate and manage their cash resources by pooling funds from different government entities into a single account held at the central bank or designated commercial bank.

1. Centralizing and managing cash resources efficiently.
2. Promoting transparency and accountability in financial transactions.
3. Improving cash forecasting and liquidity management.
4. Reducing costs and increasing financial efficiency.
5. Enhancing fiscal discipline and responsible financial practices.

10. Define bank cash book.

A bank cash book is a record that tracks and reconciles transactions related to a bank account, including deposits, withdrawals, and other bank-related activities.

11. Write about budget sheet.

A budget sheet is a financial tool used to plan and track income, expenses, and savings. It helps individuals or businesses organize their finances by listing income sources, categorizing expenses, and setting budgeted amounts for each category.

12. Write the concept of Dual aspect.

The dual aspect concept is the fundamental principle in accounting that states every financial transaction has two aspects: a debit and a credit. It ensures that for every transaction recorded, there is a corresponding entry on both the debit and credit sides of the accounting equation, maintaining balance in the books of accounts.

13. Define financial Accounting.

Financial accounting is the process of recording, summarizing, and reporting financial transactions and information of an organization to provide a clear picture of its financial performance and position to external stakeholders.