11th Accountancy U1

Commerce Includes

• Activities related to Buying and Selling

• activities related to Banking

• All Activities performed to Satisfy Ones Needs

Barter System Failed due to

• Mismatch of Needs and Possessions

• Complexity in its procedures

• Inventionof new tools of production

What was the need of introducing Classification Step in Accounting

• to make recording simple

• To help accountants in correcting errors

• To make it easier to Locate Transactions related to particular entity

"Accounting is the art of recording classifying summarising, in a significant manner and in terms of money, transactions and events, that are in part at least of financial character and interpretting the results thereof." this definition of accounting was given by

• Indian Institute of Chartered Accountants

• American Accounting Board

• American Institute of Certified Public Accountants

AICPA gave definition of Accounting in the year

• 1965

• 1940

• 1982

Which of the following is not a Qualitative Characteristic of Accounting Information

• Reliabilty

• Neat and Clean

• Comparable

Which is the last step in Accounting process

• Analysis and Interpretation

• Communicating

• Summarising

Use of Common unit of measurement and common format of reporting promotes

• Relevance

• Comparability

• Understandability

Computer software for a Software Company is

• Current Liability

• Non Current Asset

• Current Asset

Accounting Measures the business Transactions in terms of ............. units.