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Questions and Answers
What is the distinguishing characteristic of monetary transactions?
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?
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?
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?
In non-monetary transactions, what does 'barter transactions' involve?
Which transactions are recorded in the books of accounts according to the concept discussed in the text?
Which transactions are recorded in the books of accounts according to the concept discussed in the text?
What is the implication of the concept where money serves as the measuring unit for accounting?
What is the implication of the concept where money serves as the measuring unit for accounting?
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?
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?
Why are transactions like working conditions in the workplace or efficiency of management not recorded in the books of accounts?
Why are transactions like working conditions in the workplace or efficiency of management not recorded in the books of accounts?
What is the definition of Non-monetary transactions?
What is the definition of Non-monetary transactions?
What is the term used to describe the recording of a business transaction in the books of accounts?
What is the term used to describe the recording of a business transaction in the books of accounts?
Which term refers to merchandise, commodities, or articles traded by a business?
Which term refers to merchandise, commodities, or articles traded by a business?
What does Capital represent in a business?
What does Capital represent in a business?
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