Accountancy

Purchase of vegetables for use at home is not business transaction.

• True

• False

All ________ transactions are recorded in the books of accounts

• business

• personal

Accounting is the language of the ____________

• business

• finance

Which of the following is an advantage of accounting?

• a) Personal judgements influence it.

• b) Helps in keeping systematic records.

• c) Acts as a reliable evidence.

• d) Shows permanent record of business.

Which of the following is a limitation of Accounting?

• a) Ascertaining value of business.

• b) It is influenced by personal judgments.

• c) It helps in ascertaining right amount of taxes.

• d) Facilitates a comparative study

Which is a correct statement related to book-keeping?

• a) Book keeping is summarizing and analyzing of business transactions, financial in nature.

• b) Book keeping is posting transactions in the ledger.

• c) Book keeping is recording business transactions in an orderly manner

• d) None of the above

Book-Keeping is recording:

• a) All events affecting a business.

• b) All business transactions.

• c) Only business transactions with outsiders.

• d) Only internal business transaction.

Accounting records only transactions which are of a ______ character

Which of the following is not an advantage of accounting?

• a) Facilitates performance comparisons.

• b) Acts as reliable evidence.

• c) Influenced by personal judgement

• d) Replaces memory

Book-keeping is concerned with recording of business transactions in a systematic and significant manner.

• True

• False