Class 11 Account very short model questions and their solutions (set1)

 1. Define accounting.

Accounting is the practice of recording, summarizing, and reporting financial transactions and information for individuals, businesses, or organizations. It involves organizing and analyzing financial data to provide insights for decision-making, financial control, and compliance purposes.

2. What is business entity concept?

The business entity concept, in short, recognizes that a business is treated as a separate entity from its owners. It ensures that the financial transactions and records of the business are kept separate and distinct from those of its owners or individuals associated with it.

3. Write short note on sources of accounting information.

Sources of accounting information are the channels or origins from which financial data and information are obtained. They include:

• Financial statements: Provide a summary of a company's financial position, performance, and cash flows.
• Accounting records: Journals, ledgers, and subsidiary books that document and track financial transactions.
• Bank statements: Offer details of cash inflows, outflows, and account balances.
• Invoices and receipts: Serve as evidence of business transactions.
• Contracts and agreements: Contain financial terms and obligations.
• External sources: Government agencies, industry reports, market data, and economic indicators.
• Management reports: Budget reports, cost reports, and performance analyses.

4. What is cheque?

A cheque is a written, unconditional payment instrument issued by an account holder to another party, instructing the bank to pay a specific amount of money from the account holder's bank account to the recipient.

5. Write the meaning of journal proper.

Journal Proper, in short, is a specialized accounting journal used to record transactions that do not have a specific journal category. It serves as a catch-all journal for unique or infrequent transactions, ensuring they are properly recorded and reflected in the general ledger.

6. What is compensation error?

A compensation error, in short, is an accounting mistake in which an error in one account is balanced out or compensated for by an equal and opposite error in another account. As a result, the overall impact on the financial statements remains unchanged, making it difficult to identify the original error.

7. What do you meant by provision?

Provision, in short, refers to the allocation of funds or recognition of an expense to account for anticipated future liabilities or losses. It involves setting aside resources to cover potential obligations or risks.

8. Write any two objectives of new government accounting system in Nepal.

Two objectives of the new government accounting system in Nepal are:

1. Better Financial Management: The new system aims to improve how the government manages its finances. It focuses on effective budgeting, proper allocation of resources, and ensuring that public funds are used efficiently and responsibly.
2. Transparency and Accountability: The objective is to promote transparency and accountability in financial operations. The new system aims to provide clear and accessible financial information, making it easier for citizens and stakeholders to understand how public funds are being utilized and holding the government accountable for its financial decisions

9. Write any one difference between government accounting and business accounting.

One key difference between government accounting and business accounting is the focus of their financial objectives. Government accounting is primarily focused on the effective and efficient allocation of public resources to provide public services, while business accounting is primarily focused on generating profit and maximizing shareholder value.

10. Mentions the different types of journal voucher.

Generally, operating level offices prepare the following types of journal vouchers:

1. Journal voucher for budget expenditure
2. Journal voucher for advance transactions
3. Journal voucher for miscellaneous transactions
4. Journal voucher for the yearly closing

11. What is cheque dishonoured?

Cheque dishonour occurs when a cheque presented for payment is not honored by the bank due to reasons such as insufficient funds, invalidity, mismatched signatures, or stop payment requests. The bank marks the cheque as dishonoured and returns it to the account holder or the payee. Dishonoured cheques can lead to legal consequences and penalties for the issuer.

12. Write any two objective of trial balance.

1. Error identification: The trial balance helps to detect errors in the accounting records by checking for any imbalances or inconsistencies between debit and credit totals. It allows accountants to identify and rectify errors before preparing financial statements.

2. Accuracy assessment: The trial balance ensures the accuracy of the recorded transactions by verifying that the total debits equal the total credits. It serves as a control mechanism to validate the accuracy of the accounts and provides confidence in the reliability of the financial information.