Q3.Which is the last step of accounting as a process of information?
(1) Preparation of summaries in the form of financial statements
(2) Recording of data in the books of accounts
(3) Analysis and interpretation of information
(4) Communication of information
Answer
Communication of information
Related Questions on Introduction to Accounting
Q4.Use of common unit of measurement and common format of reporting promotes
(1) Understandability
(2) Comparability
(3) Reliability
(4) Relevance
Answer
Comparability
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