Accounting Equa...

______ concept is based on double entry book-keeping which means that accounting system is set up in such a way that a record is made of the two aspects of each transaction that affects the records.

R Ltd. purchased equipment from P Ltd. for Rs. 50,000 on 1st April 2019. The freight and cartage of Rs. 2,000 is spent to bring the asset to the factory and Rs. 3,000 is incurred on installing the equipment to make it possible for the intended use. The market price of machinery on 31st April, 2020 is Rs. 60,000 in financial statements.However, the auditor emphasizes that the machinery should be valued at Rs. 55,000 (50,000+2,000+3,000) according to _____________________.

_______ principle required that the same accounting method should be used from one accounting period to the next.

The cost of a small calculator is accounted as an expense and not shown as an asset in a financial statement of a business entity due to __________________.

Accounting is BEST described as__________.

Business is treated as a separate entity accounts for __________.

Fixed assets are recorded at _______.

The adjusting process is based on two accounting principles; The two accounting principles are _______________.

Assets should be valued at the price paid to acquire them is based on ________________.

An auditor should consider which of the following when evaluating the ability of a company to continue as a going concern?