Introduction to Accounting – Q&A

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on March 25, 2022

Can you answer these 29 questions covering topics from an Introduction to Accounting course? If you find it difficult to answer any questions, read our short article on Introduction to Accounting.

1. Define accounting.

2. What is bookkeeping?

3. Define business.

4. What is a business transaction?

5. Who is a proprietor?

6. What is capital?

7. What are drawings?

8. What are assets?

9. What are liabilities?

10. What is an account?

11. What is the separate entity concept?

12. What is a trade discount?

13. What is a cash discount?

14. What is a voucher?

15. What is the cash system of accounting?

16. What is the accrual system of accounting?

17. What is an invoice?

18. What is the single entry system of bookkeeping?

19. What is double entry bookkeeping?

20. What is an expense?

21. What are current assets?

22. What are fixed assets?

23. What is meant by tangible assets?

24. What are intangible assets?

25. What is a transaction?

26. What is a cash transaction?

27. What is a credit transaction?

28. What is meant by an external transaction?

29. What is an internal transaction?

Frequently Asked Questions

What is accounting?

Accounting is the process of summarizing, analyzing, and reporting on a company’s financial position. It includes recording financial transactions, preparing Financial Statements, and providing other financial information to management.

Who are the users of accounting information?

The goal of accounting is to provide accurate and timely information to help managers make informed decisions about the company’s financial position.

Who are the users of accounting information?

Who are the users of accounting information?

Why is accounting important?

Accurate and timely accounting information is essential for making sound business decisions. It can help companies assess their financial position, track performance, and make informed strategic decisions.

How is accounting information used?

Accounting information is used by various stakeholders, including management, investors, creditors, and tax authorities. For example, it can be used to decide where to allocate resources, how much debt to take on, and what tax liabilities to pay.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

10 thoughts on "Introduction to Accounting – Q&A"

    1. Glad you found the material helpful. Let us know what other kinds of information you’d like to see and we’ll try to add it in the future. Best of luck!

    1. Glad you found the material helpful. Let us know what other kinds of information you’d like to see and we’ll try to add it in the future. Best of luck!

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