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Introduction to Accounting 21

11. If the accounting information is not clearly presented, which of the qualitative
characteristic of the accounting information is violated?
12. “The role of accounting has changed over the period of time”- Do you agree?
Explain.
13. Giving examples, explain each of the following accounting terms :
• Fixed assets • Revenue • Expenses
• Short-term liability • Capital
14. Define revenues and expenses?
15. What is the primiary reason for the business students and others to
familiarise themselves with the accounting discipline?
Long Answers
1. What is accounting? Define its objectives.
2. Explain the factors which necessitated systematic accounting.
3. Describe the informational needs of external users.
4. What do you mean by an asset and what are different types of assets?
5. Explain the meaning of gain and profit. Distinguish between these two terms.
6. Explain the qualitative characteristics of accounting information.
7. Describe the role of accounting in the modern world.

Checklist to Test Your Understanding
Test Your Understanding – I
(a) Economic Transactions (b) Management/Employees (c) Creditor
(d) Time-gap (e) External (f) Free from bias
(g) Identifying the transactions and communicating information
(h) Monetary (i) Chronological
Test Your Understanding - II
1. Reliability, i.e. Verifiability, Faithfulness, Nutrality
2. Relevance, i.e. Timeliness
3. Understandability and Comparibility
Test Your Understanding - III
(a) Government and other regulators
(b) Management
(c) Social responsibility groups
(d) Lenders
(e) Suppliers and Creditors
(f) Customers
Test Your Understanding - IV
1. (c) 2. (a) 3. (c) 4. (a) 5. (a)

2018-19