Accounting Principles

As per income tax act , accounting period is :

• from 1st january to 31st december
• from 1st april to 31st march
• from 1st july to 30th june
• from Diwali to Diwali

As per dual aspects principle :

• Assets = Liabilities - Capital
• Assets = Capital - Liability
• Assets = Liabilities + Capital
• Capital = Asset + Liability

Concept of consistency means :

• all the firm in the same industry should be identical accounting principles and procedures
• all principle and procedures of accounting are utilised
• accounting principles and methods should remain consistent from one year to another
• all of the above

Principle of conservatism takes into account :

• all future profit and losses
• all future profits and no losses
• all future losses and not profits
• neither profits nor losses of the future

According to principle of conservatism closing stock is valued at :

• at cost price
• at realisable value
• cost price or realisable value whichever is less
• at real value

According to principle of conservatism :

• provision is made for bad and doubtful debts
• depreciation is charged on assets
• recording is made of outstanding expenses
• all of the above

According to which principle even the proprietor of the business is treated as a creditor of the business :

• going concern
• cost principle
• business entity principle
• accounting period principle

Due to which principle qualitative transactions are not recorded in books :

• business entity principle
• money measurement principle
• historical cost principle
• dual aspect principle

Accrual concept is based on :

• matching principle
• dual aspect principle
• cost principle
• going concern concept

According to which principle the same accounting methods should be used each year :

• prudence
• full disclosure materiality
• materiality
• consistency