Accounting concepts,Principles and conventions-2(From 2006 to 2017)

An asset was purchased for Rs.6,60,000. Cash was paid Rs.1,20,000 and for the balance a bill was drawn for 60 days. What will be the effect on fixed assets?

Guru Ltd purchased a machinery for Rs.10 lakhs. Installation charges Rs.20,000. Market value Rs.12 lakhs. Company valued the machine at market price at the end of the year at Rs.12 lakhs which concept is violated?

Cash of Rs.2000 is withdrawn for personal expenses. This will be debited to which account:

Estimated selling price less estimated cost of sales is ————

Unpaid expenses are :

In the accounting period, according to which concept,Cost incurred to acquire an asset is shown in the balance sheet.

What is the effect on the Net assets if cash is received from debtors of Rs.50,000?

Proprietor (Owner) is treated as creditor of business due to ———-

Provision for discount is made due to concept of ———-

Debtors Rs.50,000. A provision for bad debt is created @ 5% according to which concept?

Outstanding expenses is included in Profit & Loss A/C at the year end according to which concept———–

What is the objective of the conservatism?

Contingent liabilities are shown in footnote of balance sheet as per which concept?

Which of the following does not follow dual aspect ?

The rule of “Lower of cost or Market value” is based on which concept?

According to which concept the owner of an enterprise pays the “Interest on drawings”?

If market value of closing inventory is reduced below cost prices, Which is reduced below cost prices, Which of the following concepts will play a role?

Cost concept basically recognizes

A trader started retail business.During the year he sold goods worth Rs.60,000 for Rs.1,20,000 out of which only Rs.1,00,000 was collected during the year.He had a closing stock of Rs.10,000.His other business expenses for the period were RS.20,000 out of which Rs.5,000 as outstanding at year end his total profit for the year 2008-09 as per the terms of accrual concept was:

As per accrual concept, Which of the following is not true?

If nothing is written in the financial statements about the three fundamental assumptions,then it could be pressured that:

Rosa pays Rs.1200 on 01.06.2009 towards yearly subscription (01.07.2009 To 30.06.2010) of a newspaper . It means she has to make adjustment of——–

for finalization of accounts for the year ended 31.03.2010

Matching concept is based on :Revenue –       —————= Profit.

According to the prudence concept, closing stock be valued at cost or ——–Whichever is less.

Small items like stapler,calculator, etc. are not shown in books as Fixed assets although they are used in business for long period due to :

Business Enterprise is a separate entity concept from its owner.Accountant should treat a business as distinct from its owner. This concept is known as:

XYZ ltd. follows the written down value method for depreciating machinery year after year due to ———-

Human resources can’t be shown in balance sheet because of ———–Concept.

The policy of ‘Anticipate no profit and provide for all possible losses” arises due to convention of ——

“For every debit there is an equivalent credit” this statement demonstrates ———–