BA4104Account
ingForDeci
sionMaki
ng
Al
luni
tsTwoMar
k'sQuest
ionsandanswer
s
Joi
nourMai
nTel
agr
am channel
:
ht
tp:
//t
.me/
MBA2o21
ht
tps:
//t
.me/
MBA2o21
AnnaUni
ver
sit
y MBASt
udent
'Di
scussi
onsGr
oup:
htt
ps:
//t
.me/
MBAR2021
Uni
t1
2mar
ksQuest
ions:
-
1)Whati
smeantbyaccount
ing?(
or)Def
ineaccount
ing.
2)Whatar
etheobj
ect
ivesofaccount
ing?
3)Expl
aint
hebr
anchesofaccount
ing?
4)Namet
heuser
sofaccount
ingr
ecor
dsofanor
gani
zat
ion.
5)Whatar
ethef
unct
ionsofaccount
ing?
6)Li
stdownt
headv
ant
agesofaccount
ing.
7)Whatar
ethedi
ff
erentt
ypesofaccount
s?Gi
veexampl
es.
8)St
atet
heaccount
ingr
ules.
9)Whati
sdoubl
eent
rysy
stem ofbookkeepi
ng?
10)Whatar
etheadv
ant
agesofdoubl
eent
rysy
stem ofbookkeepi
ng?
Il
)Whatdoy
oumeanbyasset
s?Gi
veexampl
es.
12)Whatar
ethedi
ff
erentt
ypesofasset
s?Gi
veexampl
es.
13)Whati
smeantbyl
i
abi
l
ity
?Gi
veex
ampl
es.
14)Whatar
ethedi
ff
erentt
ypesofl
i
abi
l
iti
es?Gi
veex
ampl
es.
15)Expl
ainGAAP.
16)Expl
aint
heCostConcept
.Whati
saj
our
nal
?
,17)Gi
vet
her
uli
ngofaJour
nal
.
18)Whati
sal
edger
?
19)Gi
vet
hef
ormatofal
edgeraccount
.
20)Whati
sat
ri
albal
ance?Whatar
etheobj
ect
ivesofpr
epar
ingi
ntr
ial
bal
ance?
Answer
s:-
1.Account
ingistheprocessofrecordi
ng,cl
assi
fyi
ng,summari
zingandint
erpret
ing
fi
nanci
altr
ansacti
onsandev entsofanorgani
zati
ontoprov
iderel
evantf
inanci
al
i
nformati
ontointer
nalandexternaluser
sfordeci
sionmaki
ng.
2.Theobjecti
vesofaccount i
ngaretoprovideaccuratef
inanci
ali
nfor
mationaboutt
he
organi
zati
on'sperformance,f
inanci
alposit
ion,cashfl
ow,andtoaidindeci
sionmaki
ng,
budgeti
ng,forecasti
ng,t
axcompl i
ance,andlegalcompli
ance.
3.Thebranchesofaccount
ingarefi
nancial
accounti
ng,managementaccount
ing,
cost
account
ing,t
axaccounti
ng,audi
ti
ng,andgovernmentaccount
ing.
4.Theusersofaccount
ingrecor
dsar eowners/
sharehol
ders,cr
edit
ors,
gov
ernment
,
i
nvest
ors,management,employees,cust
omers,andsuppli
ers.
5.Thefuncti
onsofaccounti
ngarerecordingfi
nancialt
ransacti
ons,cl
assif
yingand
summar i
zi
ngf i
nanci
aldat
a,anal
yzingfinanci
alstat
ement s,
inter
preti
ngfi
nancial
dat
a,
andcommuni cati
ngfi
nanci
alinf
ormationtorelev
antstakeholders.
6.Theadvantagesofaccounti
ngareprovidi
ngfi
nanci
ali
nformati
onf ordecisionmaking,
hel
pingi
nbudget i
ngandforecast
ing,compli
ancewit
hlegalr
equirements, measur
ing
andmonitori
ngtheperfor
manceoft heorgani
zat
ion,
andimprovingfinancial
management .
7.Thedi
ff
erentt
ypesofaccount
sar
ereal
account
s,nomi
nal
account
s,andper
sonal
, accounts.Examplesofrealaccountsincludeland,buil
dings,
machi nery,
andequipment
.
Examplesofnomi nalaccountsincl
uder ent,sal
ari
es,wages,andi nter
est.Exampl
esof
personalaccount
sincludecredi
tors,debtors,banks,andindi
viduals.
8.Theaccounti
ngrul
esaret
hegeneral
lyacceptedaccount
ingpri
nci
ples(
GAAP)whi
ch
prov
ideaframeworkf
oraccount
ingpract
icesandprocedures.
9.Thedoubleentrysyst
em ofbookkeepingi
samet hodofrecor
dingfi
nanci
altr
ansact
ions
wher
eev erytr
ansacti
onhasequal andopposi
tedebi
tsandcredit
sindif
fer
entaccounts
tomaint
aintheaccounti
ngequation(Asset
s=Liabil
i
ties+Equit
y).
10.Theadv antagesoft hedoubleentrysystem ofbookkeepingar
eaccur
ater
ecordi
ngof
fi
nancialtr
ansactions,mini
mi zi
nger r
orsandf r
aud,provi
dingacompl
etef
inanci
al
pi
ctureoftheor ganizat
ion,andaidingindecisi
onmaki ng.
11.Asset
sareresour
cesownedbyanor ganizati
onthathaveval
ueandcanbeusedt o
gener
ater
evenue.Examplesofasset
sincludecash,account
srecei
vabl
e,i
nvent
ory
,
i
nvest
ments,andproper
ty.
12.Thediff
erentt
ypesofasset sarecurrentassets,f
ixedassets,andintangi
bleassets.
Examplesofcurrentasset sincl
udecash, accountsreceiv
able,andinvent
ory.Examples
offi
xedassetsincludeland,buil
dings,andmachi nery.Examplesofintangi
bleassets
i
ncludepatent
s,trademar ks,andgoodwi l
l.
13.Li
abil
ityi
sanobli
gati
onofanorgani
zat
iontopayanamountorpr
ovi
degoodsor
ser
vicesint
hefut
ure.Exampl
esofli
abi
li
ti
esincl
udeaccount
spay
abl
e,l
oans,bonds,
and
sal
ariespay
abl
e.
14.Thedi
f f
erentty
pesofl i
abi
li
ti
esarecur
rentl
iabi
li
ti
esandlong-
ter
ml iabi
l
iti
es.Examples
ofcur
rentli
abil
it
iesincl
udeaccount
spayableandsal
ari
espayable.Examplesoflong-
ter
mliabil
it
iesi
ncludebankloansandbonds.
ingForDeci
sionMaki
ng
Al
luni
tsTwoMar
k'sQuest
ionsandanswer
s
Joi
nourMai
nTel
agr
am channel
:
ht
tp:
//t
.me/
MBA2o21
ht
tps:
//t
.me/
MBA2o21
AnnaUni
ver
sit
y MBASt
udent
'Di
scussi
onsGr
oup:
htt
ps:
//t
.me/
MBAR2021
Uni
t1
2mar
ksQuest
ions:
-
1)Whati
smeantbyaccount
ing?(
or)Def
ineaccount
ing.
2)Whatar
etheobj
ect
ivesofaccount
ing?
3)Expl
aint
hebr
anchesofaccount
ing?
4)Namet
heuser
sofaccount
ingr
ecor
dsofanor
gani
zat
ion.
5)Whatar
ethef
unct
ionsofaccount
ing?
6)Li
stdownt
headv
ant
agesofaccount
ing.
7)Whatar
ethedi
ff
erentt
ypesofaccount
s?Gi
veexampl
es.
8)St
atet
heaccount
ingr
ules.
9)Whati
sdoubl
eent
rysy
stem ofbookkeepi
ng?
10)Whatar
etheadv
ant
agesofdoubl
eent
rysy
stem ofbookkeepi
ng?
Il
)Whatdoy
oumeanbyasset
s?Gi
veexampl
es.
12)Whatar
ethedi
ff
erentt
ypesofasset
s?Gi
veexampl
es.
13)Whati
smeantbyl
i
abi
l
ity
?Gi
veex
ampl
es.
14)Whatar
ethedi
ff
erentt
ypesofl
i
abi
l
iti
es?Gi
veex
ampl
es.
15)Expl
ainGAAP.
16)Expl
aint
heCostConcept
.Whati
saj
our
nal
?
,17)Gi
vet
her
uli
ngofaJour
nal
.
18)Whati
sal
edger
?
19)Gi
vet
hef
ormatofal
edgeraccount
.
20)Whati
sat
ri
albal
ance?Whatar
etheobj
ect
ivesofpr
epar
ingi
ntr
ial
bal
ance?
Answer
s:-
1.Account
ingistheprocessofrecordi
ng,cl
assi
fyi
ng,summari
zingandint
erpret
ing
fi
nanci
altr
ansacti
onsandev entsofanorgani
zati
ontoprov
iderel
evantf
inanci
al
i
nformati
ontointer
nalandexternaluser
sfordeci
sionmaki
ng.
2.Theobjecti
vesofaccount i
ngaretoprovideaccuratef
inanci
ali
nfor
mationaboutt
he
organi
zati
on'sperformance,f
inanci
alposit
ion,cashfl
ow,andtoaidindeci
sionmaki
ng,
budgeti
ng,forecasti
ng,t
axcompl i
ance,andlegalcompli
ance.
3.Thebranchesofaccount
ingarefi
nancial
accounti
ng,managementaccount
ing,
cost
account
ing,t
axaccounti
ng,audi
ti
ng,andgovernmentaccount
ing.
4.Theusersofaccount
ingrecor
dsar eowners/
sharehol
ders,cr
edit
ors,
gov
ernment
,
i
nvest
ors,management,employees,cust
omers,andsuppli
ers.
5.Thefuncti
onsofaccounti
ngarerecordingfi
nancialt
ransacti
ons,cl
assif
yingand
summar i
zi
ngf i
nanci
aldat
a,anal
yzingfinanci
alstat
ement s,
inter
preti
ngfi
nancial
dat
a,
andcommuni cati
ngfi
nanci
alinf
ormationtorelev
antstakeholders.
6.Theadvantagesofaccounti
ngareprovidi
ngfi
nanci
ali
nformati
onf ordecisionmaking,
hel
pingi
nbudget i
ngandforecast
ing,compli
ancewit
hlegalr
equirements, measur
ing
andmonitori
ngtheperfor
manceoft heorgani
zat
ion,
andimprovingfinancial
management .
7.Thedi
ff
erentt
ypesofaccount
sar
ereal
account
s,nomi
nal
account
s,andper
sonal
, accounts.Examplesofrealaccountsincludeland,buil
dings,
machi nery,
andequipment
.
Examplesofnomi nalaccountsincl
uder ent,sal
ari
es,wages,andi nter
est.Exampl
esof
personalaccount
sincludecredi
tors,debtors,banks,andindi
viduals.
8.Theaccounti
ngrul
esaret
hegeneral
lyacceptedaccount
ingpri
nci
ples(
GAAP)whi
ch
prov
ideaframeworkf
oraccount
ingpract
icesandprocedures.
9.Thedoubleentrysyst
em ofbookkeepingi
samet hodofrecor
dingfi
nanci
altr
ansact
ions
wher
eev erytr
ansacti
onhasequal andopposi
tedebi
tsandcredit
sindif
fer
entaccounts
tomaint
aintheaccounti
ngequation(Asset
s=Liabil
i
ties+Equit
y).
10.Theadv antagesoft hedoubleentrysystem ofbookkeepingar
eaccur
ater
ecordi
ngof
fi
nancialtr
ansactions,mini
mi zi
nger r
orsandf r
aud,provi
dingacompl
etef
inanci
al
pi
ctureoftheor ganizat
ion,andaidingindecisi
onmaki ng.
11.Asset
sareresour
cesownedbyanor ganizati
onthathaveval
ueandcanbeusedt o
gener
ater
evenue.Examplesofasset
sincludecash,account
srecei
vabl
e,i
nvent
ory
,
i
nvest
ments,andproper
ty.
12.Thediff
erentt
ypesofasset sarecurrentassets,f
ixedassets,andintangi
bleassets.
Examplesofcurrentasset sincl
udecash, accountsreceiv
able,andinvent
ory.Examples
offi
xedassetsincludeland,buil
dings,andmachi nery.Examplesofintangi
bleassets
i
ncludepatent
s,trademar ks,andgoodwi l
l.
13.Li
abil
ityi
sanobli
gati
onofanorgani
zat
iontopayanamountorpr
ovi
degoodsor
ser
vicesint
hefut
ure.Exampl
esofli
abi
li
ti
esincl
udeaccount
spay
abl
e,l
oans,bonds,
and
sal
ariespay
abl
e.
14.Thedi
f f
erentty
pesofl i
abi
li
ti
esarecur
rentl
iabi
li
ti
esandlong-
ter
ml iabi
l
iti
es.Examples
ofcur
rentli
abil
it
iesincl
udeaccount
spayableandsal
ari
espayable.Examplesoflong-
ter
mliabil
it
iesi
ncludebankloansandbonds.
