The concept of money measurement states that only those transactions and happenings in an organisation which can be expressed in terms of moneysuch as sale of goods or payment of expenses or receipt of income, etc., are to be recorded in the book of accounts. All such transactions or happenings whichcan not be expressed in … Read more
The concept of business entity assumes that business has a distinct and separate entity from its owners. It means that for the purposes of accounting, the businessand its owners are to be treated as two separate entities. Keeping this in view, when a person brings in some money as capital into his business, in accountingrecords, … Read more
The basic accounting concepts are referred to as the fundamental ideas or basic assumptions underlying the theory and practice of financial accounting andare broad working rules for all accounting activities and developed by the accounting profession. The important concepts have been listed as below:• Business entity;• Money measurement;• Going concern;• Accounting period;• Cost• Dual aspect … Read more
Multiple choice Questions related to Depreciation and reserves State whether the following statements are true or false Depreciation is aa. non-cash expense b. cash expensec. non-cash gain d. cash gain Depreciation is charged ona. fixed assets b. current assets.c. Land d. All of the above Depreciation isa. decline in the market value of tangible fixed … Read more