According to which concept, transactions are recorded only after goods changed in hands, but not credit?
Realization
Going concern
Money measurement
Cost
The fixed asset is shown on balance sheet on their book value. This means:
Original cost less depreciation
Depreciation value
Original cost plus depreciation
Diminishing return value
The other name of accruals principle is:
Matching
Monetary
Accounting entity
Matching principle is an extension of:
Going concern principle
Cost principle
Money measurement principle
Realization principle
Money is a recognized unit of measure. Which of the statement is correct regarding money?
It is a modern way of valuing transactions.
It is a traditional way of valuing transactions.
It is a scientific way of valuing transactions.
It is an ignorant way of valuing transactions.
There is an order placed by a customer, but no goods exchanged in hands. Is it possible to record a transaction that follows realization concept?
Yes
No
Not affected
As per account wishes
What are the objectives we consider when selecting an accounting policy?
i) Relevance
ii) Reliability
iii) Understandability
iv) Difficulty
i) ii) iii) iv)
i) ii)
i) ii) iii)
i) iii) iv)
This principle emphasises the importance of not recording a profit until it has actually been earned. The principle is:
Cost concept
Sale of a fixed asset comes under:
Capital receipt
Revenue receipt
Capital expenditure
Revenue expenditure
Which concept says that business unit has indefinite life?
Accounting period
