Part-A
Brief Questions
2nd Part
9.What do you mean by Going concern assumption?
Ans:The assumption that the enterprise will continue in operation long enough to carry out its existing objectives and commitments.
10.What is Installment method?
Ans:A method of recognizing revenue using the cash basis, each collection consists of a partial recovery of cost of goods sold and partial gross profit from the sale.
11.What is International Accounting Standards Board (IASB)?
Ans:An accounting organization whose purpose is to formulate and publish international accounting standards and to promote their acceptance worldwide.
12.What is Matching Principle?
Ans:The principle that expenses should be matched with revenues in the period when efforts are expended to generate revenues.
13.What is Materiality?
Ans:The constrant of determining if an item is important enough to likely influence the decision of a reasonably prodent investor or creditor.
14.All business transactions are recorded in terms of money.This concept is termed the___________
Ans:Monetary unit.
15.Which assumption is given credibility to the cost principle?
Ans:Going Concern assumption.
16.What is business entity assumption?
Ans:Business entity assumption states the economic events can identified with a particular unit of accountability.
Brief Questions
2nd Part
9.What do you mean by Going concern assumption?
Ans:The assumption that the enterprise will continue in operation long enough to carry out its existing objectives and commitments.
10.What is Installment method?
Ans:A method of recognizing revenue using the cash basis, each collection consists of a partial recovery of cost of goods sold and partial gross profit from the sale.
11.What is International Accounting Standards Board (IASB)?
Ans:An accounting organization whose purpose is to formulate and publish international accounting standards and to promote their acceptance worldwide.
12.What is Matching Principle?
Ans:The principle that expenses should be matched with revenues in the period when efforts are expended to generate revenues.
13.What is Materiality?
Ans:The constrant of determining if an item is important enough to likely influence the decision of a reasonably prodent investor or creditor.
14.All business transactions are recorded in terms of money.This concept is termed the___________
Ans:Monetary unit.
15.Which assumption is given credibility to the cost principle?
Ans:Going Concern assumption.
16.What is business entity assumption?
Ans:Business entity assumption states the economic events can identified with a particular unit of accountability.
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