Q.The financial statements do not exhibit :

A report tailored to a particular user's requirement is a special purpose report.

In the Tamil Nadu HSC Class-12 Accountancy syllabus, accounting reports are of two kinds:

• Routine reports, prepared regularly for general use (e.g. Trial Balance, Balance Sheet, Profit and Loss Account).
• Special purpose reports, prepared as and when required to meet a specific need of a user — for example a report on the cost of a particular product or a fund-utilisation report for a decision. …

Financial statements report only items that can be measured in money; hence they do not exhibit non-monetary data, so the answer is option (b).

The accounting money-measurement concept requires that only transactions and facts expressible in monetary terms be recorded. As a result:

• Financial statements happily show short-term data (current assets/liabilities), long-term data (fixed assets, long-term loans) and past data (they are historical records of completed transactions). …

Financial statements do not exhibit non-monetary data — option (b).

One recognised limitation of financial statements is that they follow the money measurement concept: only items that can be expressed in monetary terms are recorded. Important qualitative or non-monetary factors — such as management quality, employee morale, customer loyalty or market reputation — are not shown, even though they affect the business.

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