Vii public they want to see the business running

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(vii) Public: They want to see the business running since it makes substantial contribution to the economy in many ways, e.g., employment of people, patronage to supplier etc. Q.24. Explain the Qualitative Characteristics Of Accounting Information. Ans. Qualitative characteristics are attributes that makes the accounting information useful to users. The qualitative characteristics are: 1. Reliability: Accounting information must be reliable. Reliability of information means it is verifiable, free from material error and bias.
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9 Address: Plot No 420, Behind Shopprix Mall, Vaishali Sector 5, Ghaziabad 201010 M: 9999907099, 9818932244 O: 0120-4130999 Website: , 2. Relevance: Accounting information must be televant to the user. Information is relevant if it meets the needs of the users in decision-making. 3. Understandability: Understandability means that the information provided through the financial statements must be presented in a manner that the users are able to understand it. 4. Comparability: Comparability means that the users should be able to compare the accounting information of an enterprise of the period either with that of other periods, known as intra-firm comparison or with the accounting information of other enterprises, known as inter-firm comparison. Q.25. Write the main features and advantages of Double Entry System. Ans. The main features of Double Entry System are:- 1. It maintains a complete record of each transaction. 2. It recognise two-fold aspect of every transaction, viz., the aspect of receiving (value in) and the aspect of giving (value out). 3. In this system, one aspect is debited and the other aspect is creadited following the rules of debit and credit. 4. Since one aspect of a transaction is debited and the other is credited, the total of all debits is always equal to all credits. It helps in estabilishing arithmetical accuracy by preparing the Trial Balance. Advantages of the Double Entry System are:- (i) Scientific System: Double Entry System is a scientific system of recording business transactiona as compared as compared to other systems of Book Keeping. It helps attain the objectives of accounting. (ii) Complete Record of Transaction: Under the system, both sides of a transaction are recorded. It is a complete record as it results in showing correct income or loss, assets and liabilities. (iii) A check on the Accuracy of Accounts: By the use of this system, accuracy of the accounting work can be established Profit and Loss Account. (iv) Determining Profit or Loss : Profit earned or loss incurred during a period can be determined by preparing Profit and Loss Account. (v) Knowledge of Financial Position : Financial position of the firm or the institution can be ascertained at the end of each period by preparing the Balance Sheet.
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