Looking for similar information about the same business for an accounting period to another accounting period is known as:
Comparability
Consistency
Disclosure
Conservatism
Who gave definition for material?
American Accounts Association
Accounting Standard Board
Institute of Chartered Accounts of India
European Union Accounts
If a concern does not follow consistency principle, the result will be:
Unable to compare data
Profit will increase
Profit will decrease
Balance sheet will show losses
‘For every debit, there is corresponding credit’. On which concept is this statement based?
Business entity
Dual aspect
Money measurement
Going concern
Accounting records only those transaction and events that are in:
Financial nature
Estimates
Original cost
Manipulation
Which principle is used to record immaterial item?
Principle of materiality
Matching principle
Historical principle
Revenue recognition principle
Which principle over rules all other principles?
Prudence
Matching
Cost
When the owner makes drawing from the business, a debit entry will be made in drawings account. This will:
Increase the amount owed by owner
Decrease the amount owed by owner
There will be no change
Increase the owner's profit
According to business entity concept, when an owner introduces capital to the business that will be:
Capital account (dr)
Capital account (cr)
Drawing account (cr)
Drawing account (dr)
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
