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Questions and Answers
What is the first step in the accounting process?
What is the first step in the accounting process?
- Recording transactions in journal
- Identifying business transactions (correct)
- Summarizing in trial balance
- Classifying transactions in ledger
Which function of accounting involves putting the balances of all accounts at one place?
Which function of accounting involves putting the balances of all accounts at one place?
- Classifying in ledger
- Interpreting financial statements
- Recording in journal
- Summarizing in trial balance (correct)
Why are only transactions that can be measured in terms of money recorded in books of accounts?
Why are only transactions that can be measured in terms of money recorded in books of accounts?
- To simplify the communication of financial data
- To make financial statements look better
- To prevent fraud and omission (correct)
- Because it's easier to classify them
What is the purpose of classifying transactions in accounting?
What is the purpose of classifying transactions in accounting?
Why is communicating financial data an essential part of accounting?
Why is communicating financial data an essential part of accounting?
What is the primary purpose of bookkeeping?
What is the primary purpose of bookkeeping?
Which of the following is a limitation of accounting mentioned in the text?
Which of the following is a limitation of accounting mentioned in the text?
What is one advantage of accounting mentioned in the text?
What is one advantage of accounting mentioned in the text?
Which statement best describes the scope of accounting compared to bookkeeping?
Which statement best describes the scope of accounting compared to bookkeeping?
Why are financial accounts considered unsuitable for forecasting according to the text?
Why are financial accounts considered unsuitable for forecasting according to the text?
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