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What is Accountancy?
Before discussing about Online Accountancy Test Help, we should first understand the word Accountancy.
Accountancy, which otherwise also called as book keeping, is the process of recording, classifying, summarizing and reporting on financial transactions for a business. It provides feedback to management regarding the financial results and status of an organization. The key accountancy tasks are as below
1) Keeping Records:Keeping the records of day to day business transactions usually involve some key transactions that are maintained on repetitive basis. This includes issue of customer invoices, paying of supplier invoices, recording cash receipts and paying employees.
2) Classification:The outcomes of the efforts of the accountants are classified into a set of accounting records, of which the summary document is the general ledger (G/L). The G/L consists of a number of accounts, such as purchases, sales, depreciation expense, accounts receivable, debt, and so on.
3) Reporting : There are mainly three reports, which areto be generated in financial accounting and cover a specific, predetermined accounting period
i) Balance sheet: summarizes the firm’s assets and liabilities at a given point in time – usually at the end of an accounting period. This report provides a clear idea of the company’s financial standing.
ii) Profit & Loss statement: reports the firm’s gross proceeds, expenses, and profit or loss. This report addresses the income and expenses that are produced both by regular operating activities.
iii) Statement of Cash flows: analyses the flow of cash into and out of the business. This statement deals with the cash that moves in and out of the company by way of various business activities.
There are mainly three types of accounts viz. real, nominal and personal. There is a rule, which normally adopted in keeping books of account, which is called as the golden rules of accounting. The golden rules have been listed below
The Golden Rules of Accounting
1. Debit The Receiver, Credit The Giver
This rule is applied in the case of personal accounts. When a person gives something, it will be an inflow and therefore the person must be credit in the books of accounts. The vice versa of this is also true, which is receiver needs to be debited.
2. Debit What Comes In, Credit What Goes Out
This principle is applied to real accounts only. Here real accounts mean machinery, land and building etc. By default they always have a debit balance. Thuswe do “debit” what comes in, means something adding to the existing account balance. Similarly we do“credit” what goes out, means something reducing the account balance.
3. Expenses And Losses – Debit, Incomes And Gains – Credit
This rule is applicable in case of a nominal account. By doing credit all incomes and gains, we increase the capital and by debiting expenses and losses, we decrease the capital.
A perfect book keeper should have adequate knowledge and understanding about these golden rules.
Accountancy Test
The Accountancy test evaluates a candidate’s ability to measure, process, and communicate the financial information of a business or corporation.
A pre-employment accountancy test should be taken for selection of candidates who appliedfordifferent types of jobs, like staff accountant, financial accountant, and management accountant. In other words, finance test is must for candidates applying for financial analyst or financial management positions.
Online Accountancy Test
Online Accountancy Test has worked with businesses nationwide to set up efficient accounting systems. Though there is nos. of software to do online Accountancy Test, still conceptual knowledge of online accountancy and basics of finance are very much essential. Such as
a) One’s ability to perform under given situations,
b) One’s aptitude skills likedata interpretation ability, analytical reasoning, and verbal aptitude and communication skills etc.
These qualities are to be well tested through online accountancy test help and must be a criterion before selecting or finalizing for the employment of a good accountant person for an organization.
We can test the knowledge of accountancy through online accountancy test with variety of ways like crossword puzzles, multiple choice questions, fill in the blank etc. We can also use quizzes with answers to quickly check the understanding of many accounting concepts.
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