Theory Base of ...

The realization concept determines when goods sent on credit to customers are to be included in the sales figure for the purpose of computing the profit or loss for the accounting period. Which of the following tends to be used in practice to determine when to include a transaction in the sales figure for the period? When the goods have been:

stock is valued at cost or market price, whichever is lower This is an example of which principle

A business firm is expecting a profit of Rs.30,000 on sale of goods and same is recorded in the books of accounts. Which concept is ignored by the firm?

A company lost vital machinery in an accident on 2nd March 2013 which will have adverse impact on its production capacity. As a result it is likely to loose business to its competitors The company has not disclosed this fact in its annual report for the year ended 31st March. The company is following full disclosure principle

Machinery purchased for Rs.200000 in cash and Rs.10000 was spent for installation for machine. Then the cost of machine will be

An enterprise prepares its account under the accrual basis. Salaries amounting to Rs. 20000 for the month of March 2013 was not paid. The owner did not want to account it in the books of accounts on the ground that the amount was not paid. The enterprise closes its account on 31st March every year. Is he correct?

Manish purchased 2000 sq. yards land to build a factory and paid Rs. 18lakh towards its cost including registration charges. At the end of financial year, the value of the land came down to Rs. 13 lakh.Manish recorded the land at Rs.15 lakhs and booked loss of Rs.3 lakh. Is he correct in treating the fall in value as a loss

If a firm adopts one method in the previous year and the other method in next year. Which assumption is violated here

If a credit sale for Rs.200000 of two month is made on 15th Feb. 2012 and money received on 30 March 2012 then revenue earned is to be recorded on the month of

Insurance premium paid for a year is Rs.1200 on July 01 and if accounts are closed on March 31, every year, then the insurance premium of the current year will be