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
________ is historical in nature and reflects the past position of business organization.
Ind AS 1 requires financial statements to comprise of SOCIE, a concept which was not there under Indian GAAP. SOCIE refers to ________.
In relation to limitations of financial accounting, which of the following statements is INCORRECT?
Important Questions from Financial Statement Analysis
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?
Sale of long-term investment shows
Which technique(s) can be used in connection with analysis and interpretation of financial statements?
1. Funds Flow Statement
2. Net Working Capital Analysis
3. Cash Flow Statement
4. Ratio Analysis
________ is historical in nature and reflects the past position of business organization.
Ind AS 1 requires financial statements to comprise of SOCIE, a concept which was not there under Indian GAAP. SOCIE refers to ________.
