Q1.Which qualitative characteristics of accounting information is reflected when accounting information is clearly presented?
(1) Relevance
(2) Understandability
(3) Reliability
(4) Comparability
Answer
Understandability
Related Questions on Introduction to Accounting
Q2.Which of the following is not a business transaction?
(1) Purchase of goods for resale amounted to Rs. 50,000
(2) Paid salaries and wages amounted to Rs. 10,000
(3) Paid rent for office premises Rs. 5,000
(4) Purchased a LCD for personal use
Answer
Purchased a LCD for personal use
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
Q4.Use of common unit of measurement and common format of reporting promotes
(1) Understandability
(2) Comparability
(3) Reliability
(4) Relevance
Answer
Comparability