In relation to the single-entry system, which of the following statements is INCORRECT?
The single-entry system is a scientific and systematic system of recording and maintaining financial transactions.
The correct answer is option 3. The statement that the single-entry system is "scientific and systematic" is incorrect. The single-entry system is generally not considered scientific or systematic because it lacks the double-entry method, which ensures more accurate and reliable financial records. The other statements are correct, as the single-entry system is an incomplete bookkeeping method, lacks arithmetical accuracy, and is easy to understand but less reliable than double-entry accounting.
Similar Questions
Which of the following statements is correct?
Which of the following statements is correct?
Which of the following statements is INCORRECT?
______ is defined as a statement or a list of all ledger account balances taken from various ledger books on a particular date to check the arithmetical accuracy.
Accounting is rightly referred to as the '________' of business.
In relation to the ledger, which of the following statements is INCORRECT?
The main focus of _______ is on recording and classifying monetary transactions in the books of accounts and preparation of financial statements at the end of every accounting period.
Which of the following statements is INCORRECT?
Match the following accounting concepts with the meaning/implications.
Accounting
Concept
Meaning
Implication
(i)
Money
measurement
concept(a)
Capital of the proprietor is considered as a liability
(ii)
Business
entity concept(b)
Fixed assets are
valued on a cost basis(iii)
Going concern concept
(c)
Changes in purchasing power are ignored
A Trial Balance may be prepared according to Totals Method and ________ Method.
Important Questions from Basics of Accounting
Assertion (A) : Personal transactions of the owners of the business are not recorded in the books.
Reasoning (R) : According to the business entity concept, each business enterprise is considered as an accounting unit separate from owners.
Match List I with List II.
List I (Accounting Concepts)
List II (Purpose/Applicability)
A.
Going Concern Concept I.
The same accounting method used by a firm from one period to another B.
Consistency II.
Relate to the relative size or importance of an item or event C.
Cost concept III.
This an inappropriate assumption for a firm undergoing bankruptcy D.
Materiality
IV.
The normal basis used to account for assets
Choose the correct answer from the options given below:A company purchased a machinery on 01-01-2015 for a sum of Rs. 60,000. The retail price index on that date was 150. What is the value of machinery according to CPP method on 31st December 2015, When the price index was 200.
Which among the following are generally accepted methods of accounting for price level changes?
A. Replacement Cost Method
B. Current Purchasing Power Method
C. Opportunity Cost Method
D. Current Cost Accounting Method
E. Standard Cost Method
Choose the correct answer from the options given below:
Which of the following is/are correct?
I. All permanent accounts are balanced and carried forward to the next accounting period.
II. The temporary accounts are closed at the end of the accounting period.
