Which one of the following is a limitation of Financial Accounting?
It records only monetary items
The correct answer is option 3. Financial accounting only records monetary items, meaning that it does not include non-monetary information such as the quality of products or other qualitative data, which is a limitation of this type of accounting.
Similar Questions
In relation to limitations of financial accounting, which of the following statements is INCORRECT?
Ind AS 1 requires financial statements to comprise of SOCIE, a concept which was not there under Indian GAAP. SOCIE refers to ________.
________ is historical in nature and reflects the past position of business organization.
Important Questions from Financial Statement Analysis
Sale of long-term investment shows
The information with respect to a company is:
EBIT = Rs. 35 lakhs
15% Term loan = Rs. 50 lakhs
Working capital term loan from bank @ 20% = Rs. 30 lakhs
10% Preference share capital = Rs. 10 lakhs
Public deposits accepted @ 14% = Rs. 15 lakhs
Which one among the following is the Interest Coverage Ratio for the company?
The financial balance sheet shows:
The purpose of financial statements is:
Which of the following formulas is correct to find the ratio between fixed assets and sales?
