Tag: ascertainment of profit and loss

Questions Related to ascertainment of profit and loss

_______ is concerned about the rights of all stakeholders are protected.

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. Owner

  2. Government

  3. Creditor

  4. Investor

Show answer
Correct Option: B
Explanation:

A person, group or organization that has interest or concern in an organization.
Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources.
Not all stakeholders are equal. A company's customers are entitled to fair trading practices but they are not entitled to the same consideration as the company's employees.
Stakeholders have interest in business organisation and hence they have some rights against business, protection of which is look after by government.

The stakeholders are ______ of financial statements.

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. Valuers

  2. Users

  3. Both

  4. None of the Above

Show answer
Correct Option: B
Explanation:

A stakeholder is either an individual, group or organization who is impacted by the outcome of a project. They have an interest in the success of the project, and can be within or outside the organization that is sponsoring the project. Stakeholders can have a positive or negative influence on the project.

 Financial statements are reports prepared by a company’s management to present the financial performance and position at a point in time. A general-purpose set of financial statements usually includes a balance sheet, income statements, statement of owner’s equity, and statement of cash flows. These statements are prepared to give users outside of the company, like investors and creditors, more information about the company’s financial positions.
These financial statements are used by stakeholders such as bankers, government, creditors, debtors etc.

A _________ is a person associated with the business by monetary or non monetary terms.

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. Stakeholder

  2. Shareholder

  3. Creditor

  4. Debtor

Show answer
Correct Option: A
Explanation:

A person, group or organization that has interest or concern in an organization are known as stakeholders. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources.
Not all stakeholders are equal. A company's customers are entitled to fair trading practices but they are not entitled to the same consideration as the company's employees.

Stakeholder may be associated with the business by monetary and non monetary terms.
The owner and persons advancing loans are monetary stakeholders of business while, government , consumer or a researcher are the non monetary stakeholders of a business.

What is the correct sequence?

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. a) Transaction b) Journal c) Ledger d) Trial Balance

  2. a) Transaction b) Trial Balance c) Ledger d) Ledger

  3. a) Journal b) Ledger c) Transaction d) Trial Balance

  4. a) Transaction b) Ledger c) Journal d) Trial Balance

Show answer
Correct Option: A
Explanation:

Transactions are first Recorded in Journal, than Journal entries are posted to Ledger and than ledger balances are used in preparing a List called Trial Balance.

Objective of business is to communicate the meaningful information to various __________.

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. Stakeholders

  2. Shareholders

  3. Creditors

  4. Banks

Show answer
Correct Option: A
Explanation:

Stakeholders are the persons who have monetary and non monetary interest in a business organisation. Stakeholders can affect or be affected by the organization's actions, objectives and policies. 

Some examples of key stakeholders are management, government, banks, creditors, debtors, employees and the communuity from which business draw its resources. Therfore, it is the objective of business to communicate the meaningful information to its various stakeholders.

The owner and persons advancing loans to the business would have __________ stakes.

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. Monetary

  2. Non monetary

  3. Legal

  4. None of the above

Show answer
Correct Option: A
Explanation:

Owners and persons advancing loans to the business are the person who contributes capital into business. These persons invest money in some business. Therefore, the owner and persons advancing loans to the business would have monetary stakes.

________ is interested in information about past profits and financial position.

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. Owner

  2. Government

  3. Bank

  4. None of the above

Show answer
Correct Option: A
Explanation:

Everyone in business must keep records. Keeping good records is very important to business. Good records will help owner do the following:

  • Monitor the progress of your business
  • Prepare your financial statements
  • Identify sources of your income
  • Keep track of your deductible expenses
  • Keep track of your basis in property
  • Prepare your tax returns
  • Support items reported on your tax returns.

_________ is interested in adequacy of profits only as an assurance of return of principal and interest back in time.

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. Government

  2. Bank

  3. Owner

  4. Creditor

Show answer
Correct Option: B
Explanation:

Bank is interested in adequacy of profits only as an assurance of return of principal and interest back in time. Bank is equally concerned about the form in which the assets are held by the business. When more assets are held in cash or near cash form, the aspect is known as liquidity.

The government, consumer or a researcher will have ______________.

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. Monetary stakes

  2. Non monetary stakes

  3. Interest stakes

  4. All of the above

Show answer
Correct Option: B
Explanation:

A person, group or organization that has interest or concern in an organization.
Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources.

Stakeholders who does not have any financial interest in business organisation holds non financial or non monetary stakes. For e.g., Government, consumers, researcher etc.

___________ are the stakeholders of an business organisation.

elements of accounts accounts from incomplete records stakeholders and their information requirements ascertainment of profit and loss calculation of profit or loss under single entry system of accounting and statement of affairs accounts from incomplete records - single entry system

  1. Customer

  2. Government

  3. Creditor

  4. All of the above

Show answer
Correct Option: D
Explanation:

A stakeholder is either an individual, group or organisation who is impacted by the outcome of the project. They have an interest in the success of the project, and can be within or outside the organisation that is sponsoring the project. Bankers, customers, suppliers, government, management, shareholders etc. are all stakeholders of a business organisation. They are all have interest in a business organisation and gets affected by day to day affairs of business.