Which of the following is not a business transaction?

1

(a)

Bought furniture of Rs 10,000 for business

(b)

Paid for salaries of employees Rs 5,000

(c)

Paid sons fees from her personal bank account Rs 20,000

(d)

Paid sons fees from the business Rs 2,000

Deepti wants to buy a building form her business today. Which of the following is the relevant data for his decision?

1

(a)

Similar business acquired the required building in 2000 for Rs 10,00,000

(b)

Building cost details of 2003

(c)

Building cost details of 1998

(d)

Similar building cost in August, 2005 Rs 25,00,000

Which qualitative characteristics of accounting information is reflected when accounting information is clearly presented?

1

(a)

Understandability

(b)

Relevance

(c)

Comparability

(d)

Reliability

Use of common unit of measurement and common format of reporting promotes;

1

(a)

Comparability

(b)

Understandability

(c)

Relevance

(d)

Reliability

Information in financial reports is based on __________ transactions.

1

(a)

Economic

The process of accounting starts with _____________ and ends with ________________

1

(a)

Identifying the transactions and communicating information

Accounting measures the business transactions in terms of ____________ units.

1

(a)

Monetary

Identified and measured events should be recording in ____________ order.

1

(a)

Chronological

Write any two examples of Current Assets.

1

(a)

Two examples of current assets are:
(i) Inventory
(ii) Debtors.

What is an account?

1

(a)

An account is a basic way of recording/posting business transactions in terms of 'Debit' & 'Credit'.

What is meant by a voucher?

1

(a)

A voucher is a source document which provides proof of one financial transaction, which has taken place in the accounting period.

Explain in brief any four limitations of accounting.

3

(a)

What do you mean by Financial Accounting? Explain its one main function.

3

(a)

What is 'Cost Accounting'?

3

(a)

Explain in brief, the limitations of financial accounting.

4

(a)

Explain the qualitative characteristics of accounting information.

4

(a)

Explain the factors, which necessitated systematic accounting.

6

(a)