Related InterviewSolutions

• A company purchased goods for ₹5,00,000 and sold 80% of such goods during the year. The market value of remaining goods was ₹90,000. The company valued the closing stock at cost. Which principle is being violated?
• During the year the company purchased ballpoint pens of ₹500. These were issued to employees and were still in use at the end of the year. Which accounting concept you would follow in dealing with this item?
• Omission of paise and showing the round figures in financial statements is based on ……………..A. Conservation conventionB. Consistency conceptC. Materiality conventionD. Money measurement concept
• Accural concept is based on :A. Matching conceptB. Dual Aspect ConceptC. Cost ConceptD. Going concern Concept
• According to which Concept the same accounting methods should be used each year :A. PrudenceB. Full DisclosureC. MaterialityD. Consistency
• As per Dual Aspect Concept :A. Assets = Liabilities - CapitalB. Asset = Liabilities + CapitalC. Assets = Capital - LiabilitiesD. Capital = Assets + Liabilities
• According to which Concept even the proprietor of the business is treated as a creditor of the business :A. Going concern ConceptB. Cost ConceptC. Business Entity ConceptD. Accounting Period Concept
• According to Convention of conservation :A. Provision is made for bad and doubtful debtsB. Depreciation is charged on assetsC. Recording is made of outstanding expensesD. All of the above
• The cost of a small calculator is accounted as an expense and not shown as an asset in a financial statement of a business entity due to ……………..A. Materiality ConventionB. Matching conceptC. Periodicity conceptD. Convention of full disclosure
• State one limitation of historical cost.