ICSE Class 11 Accountancy — Flashcards for Quick Revision

A: Accountancy refers to the entire body of the theory and practice of accounting. It covers the principles, rules, and techniques used in accounting. In simple words, it is the wider subject that includ

A: Accountancy is divided into two parts: book-keeping and accounting. Book-keeping is the recording stage, while accounting goes further by summarising, analysing, interpreting, and communicating financ

A: Book-keeping is the art of recording financial transactions in the books of original entry, such as the journal, and in the ledger. The person who does this work is called a book-keeper.

A: An event is anything that brings about a change in the financial position of a business. It is the result of a transaction. Example: when business activities lead to profit, closing stock, cash balanc

A: A transaction is a kind of event involving some value between two or more persons. It includes dealing between two or more persons involving exchange of goods or services for a consideration. A transa

A: The four kinds are: cash transactions, credit transactions, barter transactions, and paper transactions. Cash transactions involve cash. Credit transactions do not involve immediate cash payment. Bart

A: The accounting equation states that Assets = Liabilities + Capital. It shows that the resources of a business are always equal to the claims against those resources. It is the basic relationship used

A: It helps in analysing transactions, checking accuracy, and understanding how assets, liabilities, and capital change together. If two parts of the equation are known, the third can be found easily. It

A: Accounting Equation: A = L + C. Here, A stands for Assets, L stands for Liabilities, and C stands for Capital.