Meaning and Objectives of Accounting

External users of Accounting information are

• Researchers

• Potential Investors

• Government

• All of the above

Book keeping and accounting

• (a) Means same an are used interchangeably.

• (b) Does not mean same and are not used interchangeably.

• (c) Means both (a) and (b)

• (d) None of the above.

Which of the following is not a business transaction?

• Paid salaries and wages amounted to ₹10,000

• Purchase of goods for resale amounted to ₹50,000

• Paid rent for office premises ₹5,000

• Purchased a LCD for personal use

Which of the following will not be recorded in the books of account?

• Sales of goods

• Quality of staff

• Payment of salary

• Purchase of goods

In accounts recording is made of:

• Only non financial transactions

• Only Financial transactions

• Financial and non financial transactions

• Personal transactions of the proprietor

Accounting is not accepted as evidence in legal matters.

• True

• False

Accounting

• Includes Book keeping

• Does not include Book keeping

• May or may not include Book keeping

• None of these

Book keeping is concerned with

• Recording financial data related to business operations.

• Designing for systems recording, classifying and summarising recorded data.

• Interpreting data for internal and external users.

• All of the above.

Bookkeeping starts where accounting ends.

• True

• False

Which of the following is not a characteristic of accounting?

• Recording nonmonetary transactions

• Classifying

• Analysing

• Summarising