25 Questions
Who are the primary users of accounting information?
Creditors, investors, owners
What is the primary objective of accounting?
Providing useful information for decision-making
Why is accounting often referred to as the 'language of business'?
It communicates financial information in a standardized manner
What role does bookkeeping play in the accounting process?
Ensuring systematic record-keeping of financial transactions
Which of the following is NOT a measurement derived from accounting activities?
Market share
What is necessary to ensure the reliability and precision of accounting measurements?
Systematic recording of financial transactions
How do stakeholders use accounting measurements in business operations?
As a basis for rational decision-making
According to the cash account, what was the balance brought forward on 1/5/15?
5,800
Which account was credited with 150 on 30/4/15?
Interest Account
What was the amount credited to the Machinery Account on 14/4/15?
5,000
How much was credited to the Discount Account on 27/4/15?
100
What was the opening balance in the M/s Kunal & Sons Account on 1/5/15?
3,500
How much was the total credit in the Commission Account on 30/4/15?
250
Which of the following transactions would be recorded in the Cash Account?
Receiving cash from Arun
What is the purpose of the Discount Account?
To record the discounts given to customers
If a company paid $2,500 to Suresh and allowed a discount of $250, how would this transaction be recorded in the Cash Account?
Cash $2,250, Discount $250
How would the purchase of machinery for cash be recorded?
Debit Machinery, Credit Cash
If a company received $1,900 from Rajesh and allowed a $100 discount, how would this transaction be recorded in the Cash Account?
Cash $1,800, Discount $100
Where would the interest earned on cash deposits be recorded?
Interest Account
Which account is used to record transactions related to cash receipts and payments?
Cash Account
If a business receives interest on a loan given to another entity, in which account should the interest income be recorded?
Interest Account
In which account are transactions related to the purchase and sale of machinery recorded?
Machinery Account
If a business receives a discount from a supplier for early payment, which account should be credited?
Discount Account
Which account is used to record interest expenses paid by a business on loans or other borrowings?
Interest Account
If a business sells machinery at a price higher than its book value, which account should be credited with the gain?
Machinery Account
Test your knowledge on the primary objective of accounting which is to provide useful information for decision-making to stakeholders such as owners, management, creditors, investors, etc. Explore various outcomes of accounting and its significance in financial decision-making.
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