CA Foundation Principles of Accounting: Questions 18 - 28 of 351

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Question number: 18

» Accounting Process » Books of Accounts - Fundamental Errors

Short Answer Question▾

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State the steps to rectify the errors if the errors are identified after the preparation of final accounts.

Question number: 19

» Accounting Process » Books of Accounts - Capital and Revenue Expenditures

Short Answer Question▾

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What is meant by the term revenue expenditure? Give a suitable example

Question number: 20

» Accounting Process » Books of Accounts - Capital and Revenue Receipts

Short Answer Question▾

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Justify your answers after classifying the following into capital and revenue receipts

  1. Owner’s contribution towards capital

  2. Entrance fees received by a club

  3. Subsidy received from government

  4. Sale revenue received by Hyundai from the sale of cars

Question number: 21

» Theoretical Framework » Accounting Standards

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What are the advantages of setting accounting standards?

Question number: 22

» Accounting Process » Books of Accounts - Capital and Revenue Receipts

Short Answer Question▾

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What is the meaning of the term Capital Receipt? Give example.

Question number: 23

» Theoretical Framework » Accounting Standards

Essay Question▾

Describe in Detail

How does the ASB formulate accounting standards?

Explanation

The ASB follows the following steps in formulating the accounting standards.

  • Areas requiring the need for accounting standards are identified

  • Various groups assist the ASB in preparing the preliminary draft and a meeting is held

  • After many considerations the draft is presented to the council and public as a exposure… (55 more words) …

Question number: 24

» Theoretical Framework » Accounting Concepts, Principles and Conventions

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Can book keeping and accountancy be called as one and the same? State reasons for your answer.

Question number: 25

» Accounting Process » Books of Accounts - Capital and Revenue Expenditures

Short Answer Question▾

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What are capital and revenue losses? Explain?

Question number: 26

» Accounting Process » Books of Accounts - Fundamental Errors

Short Answer Question▾

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What is meant by errors?

Question number: 27

» Accounting Process » Books of Accounts - Fundamental Errors

Short Answer Question▾

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What is meant by the term suspense account?

Question number: 28

» Accounting Process » Books of Accounts - Capital and Revenue Expenditures

Essay Question▾

Describe in Detail

What is the difference between a capital expenditure and revenue expenditure?

Explanation

Capital expenditure and revenue expenditure differ from each other on the following basis:

Distinction between capital and revenue expenditure

The basis on which capital and revenue expenditure differ from each other is explained

Basis of distinction

Capital expenditure

Revenue Expenditure

Earning Capacity

These increase the earning capacity of the business… (78 more words) …

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