Question
"Accounting information should be comparable”. Do you agreewith this statement? Give two reasons.

Answer

Yes, accounting information should be comparable, because
  1. Comparability is needed to make inter-firm comparisons, i.e. to find out how a firm has performed as compared to the other firms,
  2. Comparability is needed to make inter-period comparison, i.e. to find out how it has performed as compared to the previous years.

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What is a Petty Cash Book?
According to which concept, depreciation is to be charged as per one particular method year after year?
A Company has been charging depreciation @ 10% p.a. on original cost method. It now wants to change the method from original cost to diminishing balance method, the rate of depreciation being 15% p.a. Can it do so?
Enter the following transactions in subsidiary books, post them into Ledger and prepare a Trial Balance:
The following balances existed in Sunil Bros. books on April 1, 2017:
Assets: Cash in hand ₹ 27,500; Bank Balance ₹ 40,000; Debtors: Ashok ₹ 18,000, Bahadur ₹ 25,000, Charu ₹ 30,000; Stock ₹ 1,60,000 and Furniture ₹ 40,000.
Liabilities: Creditors: Dinesh ₹ 20,000 and Ekta ₹ 15,000.
2017
 
April 1
Cash Sales ₹ 18,000
April 2 Deposited into Bank ₹ 20,000
April 3
Purchased from Dinesh:
300 metres Cotton @ ₹ 60 per metre
200 metres Silk @ ₹ 100 per metre
April 5 Cheque issued to Dinesh for ₹ 25,000
April 6 Accepted a bill at one month for ₹ 15,000 drawn by Dinesh
April 8 Sold to Ashok:
400 metres Cotton @ ₹ 80 per metre
250 metres Silk @ ₹ 140 per metre
April 10 Returned by Ashok 50 metres Silk
April 12 Received Cash ₹ 8,000 and a Cheque for ₹ 40,000 from Ashok. Cheque was immediately sent to Bank.
April 13 Received a B/R from Bahadur for ₹ 20,000 at one month
April 15 Accepted a bill at two months drawn by Ekta for the amount due to her.
April 16 Purchased a Computer for office use from Shiva Ltd. for ₹ 45,000 on Credit.
April 18 Cash purchases ₹ 10,000
April 19 Received full payment from Charu by cheque, sent it to Bank. Discount allowed 2%
April 20 Issued a cheque to Dinesh in full payment of his account after deducting 1% discount
April 22 Settled the account of Shiva Ltd. by a cheque
April 24 Proprietor took away goods worth ₹ 5,000 and Cash ₹ 6,000
April 25 Purchased from Ganesh 200 metres Cotton @ ₹ 70 per metre subject to trade discount of 5%
April 27 Paid Rent ₹ 3,000 and Salaries ₹ 8,000
April 30 Interest allowed by bank ₹ 600
What is a Voucher? Prepare an imaginary Specimen of Voucher.
Enter the following transactions in proper Subsidiary Books, post them into Ledger Accounts, balance the accounts and prepare a Trial Balance:
2017  
Jan. 1 Assets: Cash in hand ₹ 20,000; Debtors: Sri Gopal ₹ 15,000, Poonam & Co. ₹ 30,000; Stock ₹ 1,75,000, Machinery ₹ 1,20,000; Furniture ₹ 40,000
Liabilities: Bank Overdraft ₹ 33,000; Creditors: Niranjan Lal ₹ 24,000, Bombay Trading Co. ₹ 16,000
Jan. 2 Purchased from Manohar Lal & Sons goods of the list price of ₹ 20,000 at 10% trade discount
Jan. 5 Returned to Manohar Lal & sons goods of the list price of ₹ 2,000
Jan. 10 Issued a Cheque to Manohar Lal & Sons in full settlement of their account
Jan. 12 Sold to Sri Gopal, goods worth ₹ 25,000
Jan. 15 Received Cash ₹ 10,000 and a Cheque for ₹ 8,000 from Sir Gopal. The Cheque was immediately sent to bank
Jan. 16 Withdrew for personal use: Cash ₹ 5,000 and goods ₹ 3,000
Jan. 17 Accepted a bill for 45 days drawn by Niranjan Lal for the amount due to him
Jan. 18 Acceptance received from Poonam & Co. for the amount due from them payable after 30 days
Jan. 19 Sold to Raghubir Brothers, goods valued ₹ 16,000
Jan. 20 Cash purchases ₹ 15,000
Jan. 22 Withdrew from bank fo office use ₹ 10,000
Jan. 23 Purchased from Bombay Trading Co., goods valued ₹ 24,000
Jan. 24 Sri Gopal returned goods worth ₹ 2,000
Jan. 25 Received from Raghubir Brothers ₹ 10,000
Jan. 27 Accepted a bill for ₹ 25,000 for 1 month drawn by Bombay Trading Co
Jan. 27 Paid Rent by Cheque ₹ 2,800
Received Commission in Cash ₹ 800
Jan. 31 Paid salaries ₹ 5,000
Raghunath had the following transactions in an accounting year:
  1. Commenced business with cash ₹ 50,000.
  2. Paid into bank ₹ 10,000.
  3. Purchased goods for cash ₹ 20,000 and credit ₹ 30,000.
  4. Sold goods for cash ₹ 40,000 costing ₹ 30,000.
  5. Rent paid ₹ 500.
  6. Rent outstanding ₹ 100.
  7. Bought furniture ₹ 5,000 on credit.
  8. Bought refrigerator for personal use ₹ 5,000.
  9. Purchased motorcycle for cash ₹ 20,000.
Create an Accounting Equation to show the effect of the above and also show his Balance Sheet.
From the following particulars, prepare the proprietor's Capital Account:
 
 
2013
 
 
April 1
Started business with
45,000
May 10
Withdrew from business for personal use
10,000
July 15
Further Capital introduced
55,000
Nov 30
Income tax paid
5,000
2014
 
 
Mar 31
Profit for the year
30,000
On which side the increase in the following accounts will be recorded? Also mention the nature of account:
  1. Furniture
  2. Rent Paid
  3. Commission Received
  4. Salary Paid
  5. Proprietor's Account
  6. Debtor
  7. Creditor
According to which concept, depreciation is to be charged as per one particular method year after year?