Q.5 Do you agree or disagree with the following statements :
1) Accounting is useful only to the owner.
2) Book-keeping is an art, science and profession.
3) Bills Payable is an asset of the business.
4) In Book-keeping and Accountancy only non monetary transactions are recorded.
5) Totalling of Journal or Ledger is called as casting,
Answers
1) No, I disagree with that, because
• Users of accounting information are
Employees, suppliers, Bank, Government, Shareholders, Investors, ant etc. etc.
2) I'm not Sure, but yes it can be,
• Actually, Book-keeping is the recording of financial transactions, and is part of the process of accounting in business.
3) Yes, I agree with that, because
• These bills appear on the asset side of the balance sheet. On the other hand, bills receivables are drawn when a vendor or seller makes any credit sale to the business. The amount mentioned in the bill is paid on a future date and such bill is called bills payable.
4) I disagree with that, because
• Money measurement concept says that only those transactions are recorded in the books of account which has the monetary value.
Therefore only transactions which have the monetary value to be recorded in books.
If there is money, there is accounting. No Money No accounting.
5) I agree to it , because
•Casting means to add up or sum up a column of figures. In accounts it is necessary to add the balances as the figures are useful in many ways.
I hope it helps (•‿•)...!!