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)
Which is an acceptable method by which the rule is applied to a given situation?
Concepts
Convention
Rule
Regulations
Historical cost principle is closely linked with a principle. Identify the principle.
Going concern
Money measurement
Matching
Entity principle
The income arising in a normal trading activities is known as:
Capital receipt
Revenue receipt
Capital expenditure
Revenue expenditure
Looking for similar information about the same business for an accounting period to another accounting period is known as:
Comparability
Consistency
Disclosure
Conservatism
In which concept, the things related only to the business is recorded?
Business entity
Dual aspect
Which principle is used to record immaterial item?
Principle of materiality
Matching principle
Historical principle
Revenue recognition principle
Where will the revenue expenditure appear?
Trading and profit and loss account
Balance sheet
Income and expenditure account
Payment and receipt account
This principle emphasises the importance of not recording a profit until it has actually been earned. The principle is:
Realization
Cost concept
In business entity concept, everything is recorded:
In view point of business
View point of owner
View point of customer
View point of both owner and business
