fbpx

1. Convention of prudence results in understatement of profit and asset and overstatement of liabilities.

 
 

2. Business entity concept is not applicable to sole trading concerns and partnership concerns.

 
 

3. Only those facts are events are recorded in accounting which are capable of being expressed in terms of money.

 
 

4. Only those facts are events are recorded in accounting which are capable of being expressed in terms of money.

 
 

5. All items or fact whether material or immaterial  are recorded in accounting.

 
 

6. Asset will be equal to capital if there is no liabilities.

 
 

7. Asset will be equal to capital if there is no liabilities.

 
 

8. Revenues are matched with expenses in accordance with going concern assumption.

 
 

9. As per Income Tax Act, accounting period is ;

 
 
 
 

10. As per Dual Aspect Concept ;

 
 
 
 

11. Concept of consistency means ;

 
 
 
 

12. Convention of conservatism takes into account ;

 
 
 
 

13. According to convention of conservatism closing stock is valued at ;

 
 
 
 

14. According to convention of conservatism ;

 
 
 
 

15. According to which concept even the proprietor of the business is treated as a creditor of the business ;

 
 
 
 

16. Due to which concept qualitative transactions are not recorded in the the books ;

 
 
 
 

17. Accrual concept is based on ;

 
 
 
 

18. According to which concept the same accounting methods should be used each year ;

 
 
 
 

19. Due to which of the following, contingent liabilities are shown in the balance sheet ;

 
 
 
 

20. The cost of a small calculator is accounting as an expense and not shown as an asset in a financial statements of a business entity due to ;

 
 
 
 

21. According to the cost concept ;

 
 
 
 

22. Providing depreciation on fixed asset is in accordance with which of the following principles/concepts.

 
 
 
 

23. The power owner of the firm records his medical expenses in the firms income statement. Indicate the principle that is violated.

 
 
 
 

24. M/s future Ltd. has invested Rs 10,000 in the shares of Relicam Industries Ltd. current market value of these shares is Rs 10,500 as value of investment in the books of accounts,  which accounting convention restricts him from doing so?

 
 
 
 

25. Which of these is not a fundamental accounting assumption?

 
 
 
 

26. Omission of paise and showing the round figure in financial statements is based on ;

 
 
 
 

27. Income is measured on the basis of ;

 
 
 
 

Question 1 of 27