Ch-3

Accounting involves only recording of:

• Only non financial transactions

• Financial transactions

• Both 1 and 2

• Personal transactons

Which of the following is not the objective of accounting

• To assist the management

• To ascertain profit and loss

• To provide information to various users

• To measure business transactions in terms of money

Which of the following is the first step in accounting

• Communicating information to the users

• Analysing and Interpretiin of financial transaction

• Identification of financial transactions

• Summarising

Which of the following is not a business transaction

• Bought computer rs. 10,000 for business

• Paid wages to workers rs. 5,000

• Bought gift for son from personal savings

• Paid for sons fee from business

External user of accounting information is

• Management

• Employees

• Both 1 and 2

• Owner

Which of the following refer to the body of knowledge of accounting

• Book keeping

• Accountancy

• Accounting

• Both 1 and 2

Which of the following is true for accounting

• Accounting is never influenced by personal judgements

• Book keeping and accounting is one and the same thing

• Accounting is only science and not art

• Profit and loss account indicates financial performance

Financial accounting deals with

• Controlling the cost of the product

• Maintenance of books of accounts

• Decision making process of management

• None of these