Practice Questions on Unit 1- Principles of Accounting

Note: We encourage you to attempt this with complete conscience within a 30 minutes time frame. Please feel free to refer to the ICAI Material and TowardsCA study notes before attempting the same.You can e-mail your answers to towardsca@gmail.com for verification.

  1. What is the primary objective of accounting? Provide a brief explanation of how accounting helps in achieving this objective.
  2. Differentiate between bookkeeping and accounting in terms of their respective functions and roles in financial management.
  3. State two limitations of accounting when it comes to assessing the worth of an enterprise. Explain why these factors are often excluded or difficult to measure in monetary terms.
  4. Name two sub-fields of accounting other than financial accounting and briefly describe their areas of focus.
  5. Identify two users of accounting information other than investors and explain how they benefit from the financial information provided.

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