According to the Concept of Conservatism, an accountant should
Recognize all losses and anticipate no gains
Recognize all gains and anticipate no losses
Recognize and anticipate both gains and losses
Both (b) and (c)
Correct Answer :
A. Recognize all losses and anticipate no gains
Related Questions
WIP stands for
Working Progress
What-in-Progress
Work-in-Progress
Works-in-Progress
The life span of a company is dependent on the life span of the
Owner(s) of the company
Promoter of the company
Managing Director of the company
None of the above
The aggregate of direct material, direct labour and direct expenses is known as
Product Cost
Manufacturing Cost
Prime Cost
Production Cost
Net Realisable Value of an asset means
The historical cost of the asset
Its sale value as on a particular date
Its written down value as on a particular date
None of the above
Depreciation is not charged on _______________.
New assets
Land
Building
None of the above
The short description of a transaction written at the end of a journal entry is known as _______________.
Summary
Narration
Memo
Info
Mr.Customer purchased goods from Mr.Seller on credit. This is a/an
Event
Transaction
Both (a) and (b)
None of the above
Providing depreciation ensures sufficient cash for asset replacement.
True
False
The balance in the Cash Book represents net income.
True
False
Which of the following equation(s) is(are) true
Assets = Liabilities + Capital
Assets - Capital = Liabilities
Both (a) and (b)
None of the above
Expenditure, which result in acquisition of permanent assets, is a capital expenditure.
True
False
Wages and Salaries is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
Trial Balance is prepared after the preparation of Profit and Loss Account.
True
False
Arrange the steps of accounting in sequential order -
(i) Trial Balance;
(ii) Journal Entry;
(iii) Balancing of Accounts;
(iv) Ledger Posting.
(i),(ii),(iii),(iv)
(ii),(iii),(iv),(i)
(ii),(iv),(i),(iii)
(ii),(iv),(iii),(i)
The basic unit of measurement of the accounting system is ______________.
Money
Finance
Weight
None of the above
The cost of a machine is Rs.5,70,000. Its scrap value is Rs.25,000 and useful life is 10 years. The depreciation amount under Straight Line Method is
Rs.57,000
Rs.59,500
Rs.54,500
Rs.50,000
Which of the following events is not a transaction?
Mr. Employer paid salary of Rs.9,000 to Mr. Employee.
Rahul sold his bicycle to Rohan for Rs.600.
Abhijeet gifted a book, priced at Rs.800, to Amit.
None of the above.
The first step of accountancy is
Journal Entry
Ledger Posting
Balancing of Accounts
Trial Balance
All credit sales are recorded in
Sales Day Book
Sales Credit Book
Sales Day Account
Sales Day Register
A part of the profit distributed to the shareholders is known as
Reserve & Surplus
Retained Earnings
Dividend
Net Profit
Sale of Office Furniture should be credited to Sales Account.
True
False
The account which can never have a credit balance is
Bank
Cash
Debtor
Creditor
Transfer to General Reserve is a charge against
Trading Account
Profit and Loss Account
Profit and Loss Appropriation Account
Balance Sheet
Cash payments are recorded on the _______________ of the Cash Book.
Debit side
Credit side
Both sides
Any one side
Deferred Revenue Expenditure is current year's revenue expenditure to be paid in latter years.
True
False
Contingent liability is an ascertained liability but its amount and due date are indeterminate.
True
False
Choose the odd one out
Wages
Stationery
Sales
Furniture
Accrual concept implies accounting on cash basis.
True
False
According to the Concept of Conservatism, an accountant should
Recognize all losses and anticipate no gains
Recognize all gains and anticipate no losses
Recognize and anticipate both gains and losses
Both (b) and (c)
Capital + Long-term liabilities = Fixed Assets + Current Assets + Cash - Current Liabilities.
True
False