Theory Base of Accounting

Which one is not a fundamental accounting concept?

• Going Concern Concept

• Money Measurement Concept

• Consistency Concept

• Accrual Concept

The amount withdrawn by the proprietor from the business for his personal use is treated as drawings. Which accounting principle is behind this treatment?

• Money Measurement Concept

• Accounting Period Concept

• Business Entity Concept

• Accrual Concept

Which is correct accounting equation?

• Assets= Liabilities - Capital

• Liabilities= Assets+ Capital

• Assets + Liabilities = Capital

• Assets = Liabilities + Capital

What is the full form of GAAP?

• Generally Approached Accounting Principles

• Generally Accepted Accounting Principles

• Generally Applied Accountancy. Principles

• None of the above

Payment of a liability has two impacts:

• Decrease in an asset and a liability

• Increase in an asset and decrease in a liability

• Decrease in an asset and increase in a liability

• Increase in an asset and a liability

On which side decrease in Outstanding Rent will be recorded?

• Credit side

• Debit side

• Both sides

• None of the above

Which is the first step of Accounting process?

• Recording in books of original entry

• Preparation of Trial Balance and Financial Statements

• Preparation of vouchers

• Identification of Business Transmissions

___________ basis of Accounting is recognised under Company Act 2013.

• Cash

• Accrual

• Both 1 and 2

• None of the above

Which is not an example of the application of the convention of Conservatism?

• Closing stock is valued at cost price or market price whichever is less

• Provision for doubtful debts is created in anticipation of actual bad - debts

• Depreciation is charged on fixed assets

• All of the above

Due to which Concept qualitative transactions are not recorded in the books?

• Business Entity Concept

• Money Measurement Concept

• Historical Cost Concept

• Dual Aspect Concept