Q4.Use of common unit of measurement and common format of reporting promotes
(1) Understandability
(2) Comparability
(3) Reliability
(4) Relevance
Answer
Comparability
Related Questions on Introduction to Accounting
Q5.The process of recording, classifying and summarizing all business transactions in order to know the financial result is called –
(1)Accounting
(2) Book – keeping
(3) None of these.
(4) Journalizing
Answer
Accounting
Q6.The person, firm or institution who does not pay the price in cash for the goods purchased or the services received is called-
(1) Proprietor
(2) Creditor
(3)None of these.
(4) Debtor
Answer
Debtor
Q7.The long term assets that have no physical existence but are rights that have value is known as
(1)Fixed assets
(2)Current assets
(3)Investments
(4)Intangible assets
Answer
Intangible assets