Theoretical Framework (CA Foundation Principles of Accounting): Questions 29 - 40 of 50

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Question number: 29

» Theoretical Framework » Valuation Principles, Accounting Estimates

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What is the meaning of the term measurement in accountancy?

Question number: 30

» Theoretical Framework » Accounting Concepts, Principles and Conventions

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Why the accrual concept is considered as important to know the true financial position of a firm?

Question number: 31

» Theoretical Framework » Accounting Concepts, Principles and Conventions

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How can the accounting principles be classified?

Explanation

The accounting principles can be classified as

  • Accounting concepts

    • Separate entity concept

    • Going concern concept

    • Accounting period concept

    • Money measurement concept

    • Dual aspect concept

    • Cost concept

    • Matching concept

    • Realization concept

  • Accounting conventions.

  • Convention of consistency

  • Convention of materiality

  • Convention of full disclosure

  • Convention of conservatism

General Accepted Accounting Principles

General Accepted Accounting Principles

Classification… (5 more words) …

Question number: 32

» Theoretical Framework » Valuation Principles, Accounting Estimates

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What are the objects or events that require measurement in accounting?

Question number: 33

» Theoretical Framework » Accounting Standards

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What are the issues dealt by the accounting standards?

Question number: 34

» Theoretical Framework » Accounting Concepts, Principles and Conventions

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Why should a business follow the convention of consistency?

Explanation

  • The convention of consistency states that any business should continuously adopt the same accounting method used in the first year in the subsequent years to come too. There should not be any changes made in the accounting methods every year.

Shows the Types of consistency in Accountancy

Shows the Types of Consistency in Accountancy

E. L Kohler… (69 more words) …

Question number: 35

» Theoretical Framework » Accounting Concepts, Principles and Conventions

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Mr. Kamal sold goods to Mr. Vikas for cash Rs. 25000. Show how Mr. Kamal and Mr. Vikas would record the transaction in their books according to the dual aspect concept.

Question number: 36

» Theoretical Framework » Valuation Principles, Accounting Estimates

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What are the three main elements of measurement?

Question number: 37

» Theoretical Framework » Meaning and Scope of Accounting

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State whether accounting is a science or an art.

Explanation

  • Accounting is a science as well as an art. The desired objectives are achieved through the technique of art. Thus accounting is an art which involves following activities in the financial transactions:

    1. Recording
    2. Classifying
    3. Summarizing
  • The financial position of the business is analyzed through the process of accounting. The American… (202 more words) …

Question number: 38

» Theoretical Framework » Accounting Standards

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Are the accountings standards free from limitations? State reasons for your answer?

Question number: 39

» Theoretical Framework » Accounting Concepts, Principles and Conventions

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Mention features of Accounting Principles.

Question number: 40

» Theoretical Framework » Accounting Policies

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How does a change in the accounting policy affect the financial statement?

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