please give some very difficult accounting transection of class 11th that I want to ask to my teacher:)
Answers
Answer:
Confidence and trust that the reported information is a reasonable representation of the actual items and events, that have occurred, indicate which qualitative characteristic of accounting information.
State whether a large order of supply of goods received by the firm be recorded in books.
Appointment of a new managing director is not recorded in the books of accounts. Why?
What is a person to whom money is owed by a firm called?
Mr Raj, an electronic goods dealer, gifted a microwave of value Rs. 30,000 to his friend Rohan and recorded it in books as drawing. Is he correct?
Is accounting an art or a science?
Accounting information refers to financial statements. The information provided by these statements can be categorised into various types. Briefly describe them.
Distinguish between financial accounting, cost accounting, and management accounting.
Distinguish between book-keeping, accounting, and accountancy.
Basic objective of accounting is to provide useful information to various users. Besides these, there are many other objectives of accounting. Explain any four of them.
Ch-1 Introduction to accounting
Answer
It indicates the qualitative characteristics of reliability.
No, it is not a transaction.
it cannot be recorded because it is impossible to measure it in monetary terms.
The person to whom the firm owes money is called ‘Creditor’.
Yes, Mr Raj is correct because personal expenses are treated as drawings and it will be recorded in the books.
Accounting is both an art as well as a science. It can be seen in the following points :
Accounting as an Art : As an art it is the technique of achieving some pre-determined objectives. Accounting is an art of recording, classifying and summarising financial transactions of the business. It helps us in ascertaining the net profit and financial position of the business enterprise.
Accounting as Science: Science is an organised body of knowledge based on certain basic principles. Therefore, accounting is also a science as it is an organised body of knowledge based on certain accounting principles.
Types of Accounting Information Accounting information refers to the information provided in financial statements of the business, generated through the process of book keeping and summarising. By using the accounting information, the users are in a position to take the correct decision. The financial statements so generated are the income statement i.e., profit and loss account and the position statement i.e., balance sheet and a Cash Flow Statement. The information made available by these statements can be categorised into the following categories:
Information Related to Profit or Loss during the year: Information about the profit earned or loss incurred by the business during an accounting period is made available through the income statement of the business i.e., the profit and loss account. Trading account provides information about gross profit or gross loss whereas the profit and loss account provides information about the net profit or net loss during the year. It also gives details of all the expenses and incomes during the year.
Information Related to Financial Position of the business : Information about the financial position of the enterprise is determined through its position statement i.e., the balance sheet.
Calculation of Profit or Loss: A businessman would be interested in knowing at periodical intervals the net result of business operations, i.e. how much profit has been earned or how much loss has been incurred. The amount of profit or loss for a particular period of a business concern can be ascertained by preparing income statement with the help of ledger account balances of revenue nature. Surplus or deficit of revenue for a particular period of a non-trading concern can also be ascertained by preparing income and expenditure account or statement.
Depiction of position: A proper record is maintained of all assets and liabilities to show the value of the firm’s possessions and the amount the firm is owing to others at the end of the particular period. With the help of this systematic record, the accountant prepares the balance sheet of the firm which provides information about the financial position.
Comparison of results: Systematic maintenance of business records enables the accountant to compare profit of one year with those of earlier years to know the significant facts about the changes. This helps the business to plan its future affairs accordingly.