Podcast
Questions and Answers
What is the prime function of accounting?
What is the prime function of accounting?
- Attain non economic goals
- Record economic data
- Provide the informational basis for action (correct)
- Classify and record the business transactions
Who are considered as customers in the context of accounting?
Who are considered as customers in the context of accounting?
- External users
- Both internal and external users (correct)
- Internal users
- Neither internal nor external users
Where does value addition take place according to accounting principles?
Where does value addition take place according to accounting principles?
- Trading organization
- Manufacturing organization
- Service organization
- Trading and service organizations (correct)
What is the primary objective of management accounting?
What is the primary objective of management accounting?
Who is interested in the accounting data to check the repaying capacity?
Who is interested in the accounting data to check the repaying capacity?
What type of asset is cash considered in accounting?
What type of asset is cash considered in accounting?
Which of the following is an example of preliminary expenses?
Which of the following is an example of preliminary expenses?
What is the nature of the cost of goods purchased for resale?
What is the nature of the cost of goods purchased for resale?
In accounting, which concept emphasizes that accountants prepare books of accounts for businesses and not for owners?
In accounting, which concept emphasizes that accountants prepare books of accounts for businesses and not for owners?
Which concept in accounting emphasizes the give and take in every financial transaction?
Which concept in accounting emphasizes the give and take in every financial transaction?
When the convention of conservatism is applied to the balance sheet, what does it result in?
When the convention of conservatism is applied to the balance sheet, what does it result in?
According to the money measurement concept, what will be recorded in the books of accounts?
According to the money measurement concept, what will be recorded in the books of accounts?
Which statement is false regarding IFRS and US GAAP?
Which statement is false regarding IFRS and US GAAP?
Flashcards
What is the prime function of accounting?
What is the prime function of accounting?
Accounting provides crucial information to guide decision-making by businesses, investors, and other stakeholders.
Who are considered as customers in the context of accounting?
Who are considered as customers in the context of accounting?
In accounting, both internal users (managers, employees) and external users (investors, creditors) are considered customers who rely on the information.
Where does value addition take place according to accounting principles?
Where does value addition take place according to accounting principles?
Value addition occurs in trading and service organizations through the creation of value for customers through their activities.
What is the primary objective of management accounting?
What is the primary objective of management accounting?
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Who is interested in the accounting data to check the repaying capacity?
Who is interested in the accounting data to check the repaying capacity?
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What type of asset is cash considered in accounting?
What type of asset is cash considered in accounting?
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Which of the following is an example of preliminary expenses?
Which of the following is an example of preliminary expenses?
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What is the nature of the cost of goods purchased for resale?
What is the nature of the cost of goods purchased for resale?
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In accounting, which concept emphasizes that accountants prepare books of accounts for businesses and not for owners?
In accounting, which concept emphasizes that accountants prepare books of accounts for businesses and not for owners?
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Which concept in accounting emphasizes the give and take in every financial transaction?
Which concept in accounting emphasizes the give and take in every financial transaction?
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When the convention of conservatism is applied to the balance sheet, what does it result in?
When the convention of conservatism is applied to the balance sheet, what does it result in?
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According to the money measurement concept, what will be recorded in the books of accounts?
According to the money measurement concept, what will be recorded in the books of accounts?
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Which statement is false regarding IFRS and US GAAP?
Which statement is false regarding IFRS and US GAAP?
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