Theoretical Framework (CA Foundation Principles of Accounting): Questions 1 - 14 of 50

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Question number: 1

» Theoretical Framework » Accounting Policies

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What is the difference between accounting assumptions and accounting policies?

Explanation

The difference between accounting assumptions and accounting policies is as follows:

Distinction between accounting assumptions and accounting policies

Table of differences between accounting assumptions and accounting policies

Basis

Accounting assumptions

Accounting policies

Number

3 in number (Going concern, accrual and consistency)

No specific number

Disclosure requirement

Not required

Disclosure is… (27 more words) …

Question number: 2

» Theoretical Framework » Meaning and Scope of Accounting

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Distinguish between Book keeping and Accounting.

Question number: 3

» Theoretical Framework » Accounting Concepts, Principles and Conventions

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Discuss the going concern concept with an example?

Question number: 4

» Theoretical Framework » Accounting Standards

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What is the meaning of convergence?

Question number: 5

» Theoretical Framework » Accounting Standards

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Who are the users of the financial reports?

Question number: 6

» Theoretical Framework » Accounting Standards

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What is meant by the term accounting standard?

Question number: 7

» Theoretical Framework » Meaning and Scope of Accounting

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What are the objectives of accounting?

Question number: 8

» Theoretical Framework » Accounting Standards

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What are the advantages of setting accounting standards?

Question number: 9

» Theoretical Framework » Accounting Standards

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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: 10

» 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: 11

» Theoretical Framework » Accounting Policies

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In what cases can a firm bring about a change in its accounting policy?

Question number: 12

» Theoretical Framework » Accounting Policies

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What are the disclosure requirements in case of change in the accounting policy?

Explanation

  • Any changes brought about in the accounting policy have to be disclosed as per the AS 1 issued by the ICAI. The disclosure requirements are as follows:

  • A change in the accounting policy having material effect in the current or later period should be disclosed

  • The amount by which any… (104 more words) …

Question number: 13

» Theoretical Framework » Accounting Concepts, Principles and Conventions

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Explain the business entity concept with an example.

Question number: 14

» Theoretical Framework » Accounting Concepts, Principles and Conventions

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What conditions are to be satisfied by an accounting principle?

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