Economic Event

Q.

The process of accounting involves recording of :

1. Both A & B

2. An event which can be measured in terms of money (quantifiable economic event)

3. An event which cannot be measured in terms of money (non-quantifiable economic event)

4. None of the above

Q.

Which of the following statements is correct?

1. Recording revenue results in an increase in assets or a decrease in liabilities.

2. Recording revenue results in an increase in assets or a decrease in stockholders’ equity.

3. Recording expenses results in a decrease in assets or a decrease in liabilities.

4. Recording expenses results in an increase in assets or an increase in liabilities.

Q.

What goes in the purchases ledger?

Q.

Identify the economic event from the following?

1. Paying advance to employee who met an accident

2. A housewife doing day to day work like cooking, laundry etc

3. A person doing a work for hobby like gardening, fishing, painting and so on

4. Work done for charity like providing free services to earthquake victims

Q. Answer in One Sentence :

What is Consistency Concept?

Q. Q.15. What is the value involved in recording transactions on the basis of source of documents?