INTRODUCTION TO ACCOUNTING

INTRODUCTION TO ACCOUNTING

1.  It means determining what transactions to record……………..

Identification

2. It means quantification of business transactions

Measurement

3. Once the economic events are identified and measured in financial terms, these are ……………in books of account

          Recording

4. The economic events are identified, measured and recorded in order to ……………to the management.

          Communicate

5. It refers to a business enterprise, whether for profit or not-for profit motive.

          Organisation

6. Information in financial reports is based on ..................... transactions.

          Economic

7. Internal users are the ..................... of the business entity.

          Management

8. ..................... users are groups outside the business entity, who uses the information to make decisions about the business entity.

          External

9. Accounting measures the business transactions in terms of ............ units.

          Monetary

10. Identified and measured economic events should be recording in ............ order.

          Chronological

11. It means the users must be able to depend on the information.

          Reliability

12. The purpose of this branch of accounting is to keep a record of all financial transactions

          Financial

13.  The purpose of this branch of accounting is to analyse the expenditure so as to ascertain the cost of various products

          Cost Accounting

14. The purpose of this branch of accounting is to assist the management in taking rational policy decisions

          Management

15. It means decision-makers must interpret accounting information in the same sense as it is prepared and conveyed to them.

          Understandability

16. It is related to analysis of two companies accounting information.

          Comparability