ACCOUNTANCY XI QUIZ

Revenue must be recognised when it is realised and Expenses are recognised when incurred .

Identify Accounting Assumption involved

• Accrual

• Revenue Recognition

• Prudence

• None of the above

Provision for doubtful debts recorded due to --

• Materiality Principle

• Consistency

• Money measurement

• Prudence

IFRS are based on ---

• Principles

• Rule

• Both a) and b)

• Neither a) nor b)

Which principle may lead to creation of Secret Reserves

• Materiality

• Conservatism

• Consistency

• Going Concern

A customer of business who was purchasing approx 30 % of the business products since last few years , have discontinued business. Which Accounting Principle is involved if it's disclosed/ not disclosed in financial statements ?

• Materiality

• Going Concern

• Full Disclosure

• None of the above

Ind- AS prescribes that every company shall value its financial Assets at ----

• Historical Cost

• Fair Value

• Any of the above two

• Average price

................Discount is the reduction in prices by the seller to the purchaser of goods when they buy goods of certain quantity or value

• Cash Discount

• Rebate

• Trade Discount

• Any of the above

Amount received or Receivable from sale of goods and /or services or both .

• Revenue from operations

• Revenue Receipt

• Accrued Income

• Revenue

Amount spent or Liability incurred for purchasing tangible or intangible fixed Assets .

• Expenditure

• Revenue Expenditure

• Capital Expenditure

• None of the above

Purchases means ----

• Purchase of all the assets

• Purchase of fixed assets

• Purchase of goods

• Purchase of any thing in business