Commerce Exam > Commerce Questions > Narration is given along with journal entry:a...
Start Learning for Free
Narration is given along with journal entry:
- a)To signify the impact of entry on profitability.
- b)To disclose the profit or loss of the transaction.
- c)To give a precise explanation for proper understanding of the entry.
- d)To secretly understanding the inner meaning of entries.
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
Narration is given along with journal entry:a)To signify the impact of...
C: To give a precise explanation for proper understanding of the entry.
Narration is a brief explanation or description that is provided along with a journal entry to give context and clarify the purpose of the transaction. Narration helps to provide a clear and concise explanation of the entry, making it easier to understand the impact of the transaction on the financial statements of the business.
Narration is typically included with journal entries to ensure that the entries are accurately understood and can be properly analyzed by users of the financial statements. It is not included for the purpose of disclosing profit or loss, or for any secret or hidden purpose.
Option A is incorrect because narration is not necessarily intended to signify the impact of the entry on profitability. Option B is incorrect because narration does not necessarily disclose the profit or loss of a transaction. Option D is incorrect because narration is not intended to have any hidden or secret meaning.
It is important to include clear and concise narration with journal entries in order to accurately and effectively communicate the purpose and impact of transactions on the financial statements of a business.
Most Upvoted Answer
Narration is given along with journal entry:a)To signify the impact of...
A short explanation of each transaction is written under each entry which is called narration. ... Besides this, if there be any mistake in determining debit or credit aspect of a transaction, it can be easily detected from narration. "A journal entry is not complete without narration".
Free Test
FREE
| Start Free Test |
Community Answer
Narration is given along with journal entry:a)To signify the impact of...
Explanation:
Journal Entry Explanation:
When a journal entry is made in accounting, it is crucial to provide a precise explanation for proper understanding of the entry. This explanation helps stakeholders, such as managers, investors, and auditors, to comprehend the reason behind the entry and its impact on the financial statements.
Impact on Profitability:
The explanation in a journal entry helps to signify the impact of the entry on profitability. By clearly outlining whether the entry results in a profit or loss, stakeholders can assess the financial health of the business and make informed decisions.
Disclosure of Profit or Loss:
In addition, the explanation in a journal entry discloses the profit or loss of the transaction. This transparency is essential for maintaining the integrity of the financial reporting process and ensuring compliance with accounting standards.
Precise Understanding:
Providing a precise explanation in a journal entry also aids in ensuring that all parties have a clear and accurate understanding of the transaction. This clarity helps to prevent misunderstandings and errors in financial reporting.
Therefore, the main purpose of providing a precise explanation in a journal entry is to facilitate proper understanding of the entry and its impact on the financial statements.
Journal Entry Explanation:
When a journal entry is made in accounting, it is crucial to provide a precise explanation for proper understanding of the entry. This explanation helps stakeholders, such as managers, investors, and auditors, to comprehend the reason behind the entry and its impact on the financial statements.
Impact on Profitability:
The explanation in a journal entry helps to signify the impact of the entry on profitability. By clearly outlining whether the entry results in a profit or loss, stakeholders can assess the financial health of the business and make informed decisions.
Disclosure of Profit or Loss:
In addition, the explanation in a journal entry discloses the profit or loss of the transaction. This transparency is essential for maintaining the integrity of the financial reporting process and ensuring compliance with accounting standards.
Precise Understanding:
Providing a precise explanation in a journal entry also aids in ensuring that all parties have a clear and accurate understanding of the transaction. This clarity helps to prevent misunderstandings and errors in financial reporting.
Therefore, the main purpose of providing a precise explanation in a journal entry is to facilitate proper understanding of the entry and its impact on the financial statements.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
Narration is given along with journal entry:a)To signify the impact of entry on profitability.b)To disclose the profit or loss of the transaction.c)To give a precise explanation for proper understanding of the entry.d)To secretly understanding the inner meaning of entries.Correct answer is option 'C'. Can you explain this answer?
Question Description
Narration is given along with journal entry:a)To signify the impact of entry on profitability.b)To disclose the profit or loss of the transaction.c)To give a precise explanation for proper understanding of the entry.d)To secretly understanding the inner meaning of entries.Correct answer is option 'C'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Narration is given along with journal entry:a)To signify the impact of entry on profitability.b)To disclose the profit or loss of the transaction.c)To give a precise explanation for proper understanding of the entry.d)To secretly understanding the inner meaning of entries.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Narration is given along with journal entry:a)To signify the impact of entry on profitability.b)To disclose the profit or loss of the transaction.c)To give a precise explanation for proper understanding of the entry.d)To secretly understanding the inner meaning of entries.Correct answer is option 'C'. Can you explain this answer?.
Narration is given along with journal entry:a)To signify the impact of entry on profitability.b)To disclose the profit or loss of the transaction.c)To give a precise explanation for proper understanding of the entry.d)To secretly understanding the inner meaning of entries.Correct answer is option 'C'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Narration is given along with journal entry:a)To signify the impact of entry on profitability.b)To disclose the profit or loss of the transaction.c)To give a precise explanation for proper understanding of the entry.d)To secretly understanding the inner meaning of entries.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Narration is given along with journal entry:a)To signify the impact of entry on profitability.b)To disclose the profit or loss of the transaction.c)To give a precise explanation for proper understanding of the entry.d)To secretly understanding the inner meaning of entries.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Narration is given along with journal entry:a)To signify the impact of entry on profitability.b)To disclose the profit or loss of the transaction.c)To give a precise explanation for proper understanding of the entry.d)To secretly understanding the inner meaning of entries.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Narration is given along with journal entry:a)To signify the impact of entry on profitability.b)To disclose the profit or loss of the transaction.c)To give a precise explanation for proper understanding of the entry.d)To secretly understanding the inner meaning of entries.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Narration is given along with journal entry:a)To signify the impact of entry on profitability.b)To disclose the profit or loss of the transaction.c)To give a precise explanation for proper understanding of the entry.d)To secretly understanding the inner meaning of entries.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Narration is given along with journal entry:a)To signify the impact of entry on profitability.b)To disclose the profit or loss of the transaction.c)To give a precise explanation for proper understanding of the entry.d)To secretly understanding the inner meaning of entries.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Narration is given along with journal entry:a)To signify the impact of entry on profitability.b)To disclose the profit or loss of the transaction.c)To give a precise explanation for proper understanding of the entry.d)To secretly understanding the inner meaning of entries.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Narration is given along with journal entry:a)To signify the impact of entry on profitability.b)To disclose the profit or loss of the transaction.c)To give a precise explanation for proper understanding of the entry.d)To secretly understanding the inner meaning of entries.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup