Short Answers Ans. The four basic requirements of a database application are: 2. Name the various categories of accounting package. Ans. The various categories of accounting package: 3. Give example of two types of operating systems. Ans. The following are…
Short Answers Ans. The different elements of a computer system are explain below: Six type of software –Operating system, Utility programmers, Application software, Language processors, System software, connectivity software. c. People:- People interacting with the computer are also called live-ware…
Short Answer Ans. Incomplete records refer to a situation where a business’s financial transactions are not fully or systematically recorded according to the double-entry bookkeeping system. Instead of having both a debit and credit for every transaction, some entries are missing, one-sided,…
Short Answers Ans. It is extremely important to record the adjusting entries in the preparation of final accounts. The financial statements include only those entries which belong to the current year. It rules out the previous and forthcoming year’s entries…
Short Answers Ans. The following are the objectives of preparing financial statements: This is estimated by preparing Trading and Profit and Loss Account. b. To ascertain the true financial position of a business. This is reflected by the Balance Sheet.…
Short Answers Ans. Depreciation is the decrease in the value of fixed assets caused by wear and tear over time. These fixed assets could be anything from furniture to machinery to a building. It is important to note that such…
Short Answer Solution:- Trial balance is a statement prepared to check the arithmetical accuracy of transactions recorded in the journal, posted into the ledger and balanced in the ledger accounts. The balance of ledger account shows the difference between the…
Short Answers Ans. The need to prepare Bank Reconciliation Statement are given below: 2. What is a bank overdraft? Ans. Bank overdraft is a liability to an account holder. When the account holder withdraws excess amount over his/her available bank…
Short Answer Answer:- Transaction are recorded directly from source documents in the Cash book, so there is no need to record transactions in the Journal book. Further, on the basis of the cash transactions recorded in the Cash book, cash…
Source Documents:- Source documents are the original records of business transactions. They are important because they prove, firs, that a transaction occurred, and they also serve as evidence of the details of that transaction should there ever be a discrepancy…
Accounting Principal Accounting Principal are the rules adopted by accountants universally while recording accounting transaction. They are the norms or rules which are followed in accounting of various items of assets, liabilities, expenses, income, etc. for example, Inventory (stock) is…
WHAT IS ACCOUNTING Accounting is a process of identifying the events of financial nature, recording them in journal, classifying in their respective ledgers, summarizing them in Profit and Loss Account and Balance Sheet and communicating the results to…