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easyMCQCUET 2025 31 May Shift 12026CUET Accountancy
1 mark

Which of the following is not the nature of financial statements-

  1. A
    The original cost or historical cost is the basis of recording transactions.
  2. B
    It cannot be expressed in monetary terms.
  3. C
    Certain accounting conventions are followed while preparing financial statements.
  4. D
    Financial statements are prepared on certain basic assumptions

Solution & Step-by-step Explanation

Financial statements strictly record economic events that can be expressed in objective monetary terms. Therefore, stating that they "cannot be expressed in monetary terms" is incorrect (not the nature of financial statements).

Practice this question

Try it yourself before checking the explanation above.

Which of the following is not the nature of financial statements-
A
The original cost or historical cost is the basis of recording transactions.
B
It cannot be expressed in monetary terms.
C
Certain accounting conventions are followed while preparing financial statements.
D
Financial statements are prepared on certain basic assumptions

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