Basics in Accounting

Resignation by a Marketing Manager is not recorded in the books of accounts. Why?

• It is not recorded because it cannot be measured in money terms.

• It is not recorded because it the rights of the employee

• It is not recorded because it is benefit of the organisation

• It is not recorded because it will be substituted with another appointment of employee

Accounting is the art of .......

Book keeping is concerned with

• recording financial data relating to business operations

• designing for systems recording, classifying and summarising recorded data

• Interpreting data for internal and external users

• Sales and Purchase of Goods

Which is the last step of accounting as a process of information?

• Recording the transaction

• Preparation of financial statements

• Communication of information

• Analysis and interpretation of information

Which of the following is a limitation of accounting?

• Assistance to Management

• Replaces Memory

• Provides unrealistic Information

• Evidence in Court

Cost of Goods Manufactured is determined by

• Financial Accounting

• Cost Accounting

• Human Resources Accounting

• Management Accounting

_____is the branch of commerce, which keeps a record of monetary transactions in a set of books

Which external user of accounting information is most interested in knowing the long-term solvency position of the firm?

• Employees

• Management

• Researchers

• Bank and Financial Institutions

The objective of Accounting is

• To monitor non-Financial information's are not recorded in the books of accounts

• To Ascertain the financial positon of the company

• To assist the management in making business plans

• To ignore price level changes

The system which recognises and records both aspects of a transaction of accounting is known as