Introduction to Accounting

How can we identify a financial transaction ?

• by measuring the quantity of goods in kgs

• by measuring the quantity of goods in litres

• by measuring the quantity of goods in terms of money

• none of these

Which of the following is not a business transaction?

• Bought furniture of ₹10,000 for business

• Paid for salaries of employees ₹5,000

• Paid son's fees from her personal bank account ₹20,000

• Paid son's fees from the business ₹2,000

The process of identify, classify, recording and communicating business transaction is called as book-keeping.

• True

• False

The starting point of the accounting process is

• communicating information to users.

• identifying economic events.

• recording economic events.

• None of these answers are correct.

We record ___________in the books of accounts.

• financial transactions

• no financial transactions

• both financial and non financial transactions

• none of these