Accounting Information Quiz

The primary qualities that make accounting information useful for decision making are _______.

• Relevance and freedom from bias

• Reliability and comparability

• Comparability and consistency

• None of the above

The amount drawn by a businessman for his personal use is _______.

• Capital

• Drawing

• Expenditure

• Loss

During a lifetime of an entity, accounting produces financial statements in accordance with which basic accounting concept?

• Conservation.

• Matching

• Accounting period

• None of the above

In India, the accounting standard board was set up in the year ______.

• 1972

• 1977

• 1956

• 1932

A concept that a business enterprise will not be sold or liquidated in the near future is known as ________.

• Going concern

• Economic entity

• Monetary unit

• None of the above

Meaning of credibility of going concern is _______.

• Closing of business

• Opening of business

• Continuing of business

• None of the above

When information about two different enterprises has been prepared presented in a similar manner, the information exhibits the characteristics of ________.

• Verifiability

• Relevance

• Reliability

• None of the above

The basic accounting postulates are denoted by ______.

• Concepts

• Bookkeeping

• Accounting standards

• None of the above

Generally, the duration of an Accounting period is of _______.

• Six months

• Three months

• Twelve months

• One month

The sum of Liabilities and Capital is _____.

• Expense

• Income

• Drawings

• Assets