Q-1 Proprietor
Personal Expenditure not recorded in the books of accounts due to :
a)
Materiality
b)
Conservatism
c) Going Concern d)
Business Entity Concept
Q-2 Two
primary qualitative characteristics of financial statements are :
a)
Understandability
and Materiality b) Relevance and Reliability
c) Neutrality d) Materiality and Reliability
Q-3 Assets
are held in the business for the purpose of :
a)
Resale
b)
Conversion into cash
c) Earning Revenue d)
none of the above
Q-4 Decrease
in the amount of Trade Payables
a)
Increase
in cash b) Decrease in
Bank over draft account
c) Decrease in cash d) No change in assets
Q-5 Explain
the following Principles :
(i)
Verifiable Objective Concept
(ii)
Revenue
Recognition Concept
(iii)
Matching
Concept
(iv)
Prudence
Concept
(v)
Accounting
Period Principle
(vi)
Materiality
Principles
(vii)
Business
entity Concept
Q-6 "Only
Financial Transactions are recorded in accounting". Explain.
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