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
