Accounting Terminologies Quiz
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Questions and Answers

What is the distinguishing characteristic of monetary transactions?

  • They only occur between two parties
  • They involve the exchange of goods
  • They exclude the use of money
  • They are recorded in books of accounts (correct)

    • Which of the following is an example of a cash transaction?

  • Machinery sold on credit
  • Goods bought on credit
  • Payment of salary immediately (correct)
  • Goods sold on credit

    • What is unique about credit transactions compared to cash transactions?

  • Cash is paid or received at a later date (correct)
  • Cash is paid or received immediately
  • They involve only one party
  • They do not require recording in books of accounts

    • In non-monetary transactions, what does 'barter transactions' involve?

    <p>Exchange of goods for goods without involving money</p> Signup and view all the answers

    Which transactions are recorded in the books of accounts according to the concept discussed in the text?

    <p>Only business transactions</p> Signup and view all the answers

    What is the implication of the concept where money serves as the measuring unit for accounting?

    <p>Transactions not involving money are excluded from the books</p> Signup and view all the answers

    If a proprietor uses half of a building for personal residence and half for business, what amount will be deducted from the total rent as drawings?

    <p>` 25,000/-</p> Signup and view all the answers

    Why are transactions like working conditions in the workplace or efficiency of management not recorded in the books of accounts?

    <p>Because they are non-monetary and cannot be expressed in terms of money</p> Signup and view all the answers

    What is the definition of Non-monetary transactions?

    <p>Transactions not involving any money exchange directly or indirectly</p> Signup and view all the answers

    What is the term used to describe the recording of a business transaction in the books of accounts?

    <p>Entry</p> Signup and view all the answers

    Which term refers to merchandise, commodities, or articles traded by a business?

    <p>Goods</p> Signup and view all the answers

    What does Capital represent in a business?

    <p>Owner's investment in the business</p> Signup and view all the answers

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