Home › CBSE Class 11 (Commerce) › Accountancy › Introduction to Accounting › Which limitation of accounting information is tr…
Which limitation of accounting information is true?
AIt covers future events only
BIt is purely qualitative
CIt excludes money values
DIt leaves out non-financial facts
Answer & Solution
Correct answer: D. It leaves out non-financial facts
Accounting information relates to past transactions and is quantitative and financial, so qualitative and non-financial matters are left out.
Related questions
A trader sells stationery worth Rs 1,00,000 on credit to Mr. Ravi. Mr. Ravi is aMr. Sunrise starts with Rs 5,00,000, buys stationery worth Rs 1,50,000 from Mr. Peace on cSundry creditors are shown in the balance sheet on thePersons who owe the firm money for goods bought on credit areClosing stock of a manufacturing company comprises raw materials, finished goods andUnsold goods lying with a trader at the end of the period are calledTotal goods procured for use or sale, on cash and credit, are calledWithdrawal of cash or goods by the owner for personal use is