Explore topic-wise InterviewSolutions in .

This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.

1.

Identify the stakeholder group who would be most interested in the following : (i) The ethical or enviromental activities of the firm. (ii) Whether the firm has a long term future. (iii) The ability of the firm to carry on providing quality products.

Answer» (i) Social responsibility group (such as environmental protection group).
(ii) Potential investors and long term creditors.
(iii) Public or Customers.
Discussion
2.

In accounts recording is made of :A. Only financial transactionsB. Only Non-financial transactionsC. Financial as well as non-financial transactionsD. Personal transactions of the proprietor

Answer» Correct Answer - A
Discussion
3.

Ghanshyam is a furniture dealer. Which one of the following will not be recorded in his books?A. Purchase of timber for Rs. 50,000B. Sofa set worth Rs. 40,000 taken to his homeC. Sale of houseland furniture for Rs. 5,000D. Dining table of Rs. 30,000 given to his friend as gift

Answer» Correct Answer - C
Discussion
4.

Which of the following transactions is not financial character?A. Purchase of asset on creditB. Purchase of asset for cashC. Withdrawing of money by proprietor from businessD. Strike by Employees

Answer» Correct Answer - D
Discussion
5.

State any six of accounting information Why do they need accounting information ?

Answer» (i) The owners/shareholders : use them to see if they are getting satisfactory returns on their investment and also to assess the financial health of their enterprise.
(ii) The mangers/directors : use them to ascertain the strengths and weaknesses of the enterprise.
The credictors use them to know whether the firm will be able to pay the interest regularly and will be able to pay their debts as they become due.
(iv) The prospective investors : use them to assess whether or not to invest their money in this firm.
(v) Employes : They need accounting information to claim increase in wages, bonus and other benefits.
(vi) The government agencies : use them for the payment of various taxes such as Goods and Service Tax (GST) , Income Tax etc.
Discussion