Accounting

Insurance Claim Received on account of plant and machinery completely damaged by fire is a capital receipt

• True

• False

Partners can share profits or losses in their capital ratio, when there is no agreement

• True

• False

Land is a _____ asset

• Fixed Asset

• Current Asset

• Intangible Asset

• Fictitious asset

Accounting furnishes data on

• A) Income and cost for the managers

• B) Financial conditions of the institutions

• C) Company’s tax liability for a particular year

• D) All the above

Accounting records:

• Financial transactions
• Financial and non financial transactions
• both of the above

• none of the above

Users of accounting information are

• The owner of the business
• investors
• creditors
• All of the above

Types of accounting are

• financial accounting
• cost accounting
• management accounting
• All of the above

which of the following represents business transaction :

• Machinery is purchased for cash
• goods are ordered for delivery next month
• The owner of the firm dies
• An employee is dismissed from his job

What is the primary purpose of accounting statements?

• To provide a general overview of the business

• To accurately represent the financial position of the business

• To summarize non-financial business activities

• To forecast future business trends

Answer explanation

The primary purpose of accounting statements is to accurately represent the financial position of the business.

What is an advantage of a bank loan?

• There will be little or no interest
• You can pay in smaller installments
• They are quick and easy to arrange
• You don't have to pay it back