'Accounting information should be comparable'. Do you agree with this statement? Give two reasons.
Accounting information should be comparable because of the following reasons.
1. Comparable accounting information helps in inter-firm comparisons. This helps in assessing viability and advantages of various policies adopted by different firms.
2. It also helps in intra-firm comparisons that help in determining the changes and also to ascertain the results of various policies and plans adopted in different time periods. This also helps to figure out the errors, ascertain growth and assist in management planning.
Popular Questions of Class 11th accountancy
- Q:- Explain the qualitative characteristics of accounting information.
- Q:- Define accounting and state its objectives.
- Q:-
Differentiate between source documents and vouchers.
- Q:- Complete the following work sheet:
(i) If a firm believes that some of its debtors may ′default′, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the ___________ concept.
(ii) The fact that a business is separate and distinguishable from its owner is best exemplified by the ___________ concept.
(iii) Everything a firm owns, it also owns out to somebody. This co-incidence is explained by the ___________ concept.
(iv) The ___________ concept states that if straight line method of depreciation is used in one year, then it should also be used in the next year.
(v) A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increased. Normal accounting procedure is to ignore this because of the ___________.
(vi) If a firm receives an order for goods, it would not be included in the sales figure owing to the ___________.
(vii) The management of a firm is remarkably incompetent, but the firms accountants can not take this into account while preparing book of accounts because of ________ concept. - Q:- When should revenue be recognised? Are there exceptions to the general rule?
- Q:- Describe the role of accounting in the modern world.
- Q:- Giving examples, explain each of the following accounting terms:
Fixed assets
Gain
Profit
Revenue
Expenses
Short-term liability
Capital - Q:- Discuss the concept-based on the premise do not anticipate profits but provide for all losses.
- Q:- What do you mean by an asset and what are different types of assets?
- Q:- Enumerate informational needs of management.
Recently Viewed Questions of Class 11th accountancy
- Q:- What do you mean by an asset and what are different types of assets?
- Q:-
Double column cash book records:
(i) All transactions
(ii) Cash and bank transactions
(iii) Only cash transactions
(iv) Only credit transactions - Q:-
Prepare the accounting equation on the basis of the following data.
1. Harsha started business with cash ₹ 2,00,000
2. Purchased goods from Naman for cash ₹ 40,000
3. Sold goods to Bhanu costing ₹ 10,000/- for ₹ 12,000
4. Bought furniture on credit ₹ 7,000
- Q:- Complete the following work sheet:
(i) If a firm believes that some of its debtors may ′default′, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the ___________ concept.
(ii) The fact that a business is separate and distinguishable from its owner is best exemplified by the ___________ concept.
(iii) Everything a firm owns, it also owns out to somebody. This co-incidence is explained by the ___________ concept.
(iv) The ___________ concept states that if straight line method of depreciation is used in one year, then it should also be used in the next year.
(v) A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increased. Normal accounting procedure is to ignore this because of the ___________.
(vi) If a firm receives an order for goods, it would not be included in the sales figure owing to the ___________.
(vii) The management of a firm is remarkably incompetent, but the firms accountants can not take this into account while preparing book of accounts because of ________ concept. - Q:- What is matching concept? Why should a business concern follow this concept? Discuss?
- Q:- Define accounting.
- Q:- Why is the evidence provided by source documents important to accounting?
- Q:- Define accounting and state its objectives.
- Q:- Why are the rules of debit and credit same for both liability and capital?
- Q:-
Total of these transactions is posted in purchase account :
(i) Purchase of furniture
(ii) Cash and credit purchase
(iii) Purchases return
(iv) Purchase of stationery
3 Comment(s) on this Question
answer might be more good if points are little smaller and more
Useful answer
According information should be comparable. Do you agree with this statement.give two reasmatlb
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