Tag: commercial applications
Questions Related to commercial applications
Cash cannot be misappropriated by ___________.
State the reasons whether the following statement is true or false:
Accrual concept implies accounting on cash basis.
From the following details calculate net profit on accrual basis.
| Particulars | Rs. |
|---|---|
| Goods sold for cash | $5,00,000$ |
| Credit sales | $25,000$ |
| Cash purchases | $4,00,000$ |
| Credit purchases | $50,000$ |
| Wages paid | $20,000$ |
| Outstanding expenses | $10,000$ |
| Rent paid | $5,000$ |
| Rent outstanding | $2,000$ |
| Depreciation on building | $10,000$ |
| Loss on sales of fixed assets | $1,000$ |
In accrual basis or mercantile basis of accounting, the financial effect of the transaction is recorded in the books ___________.
In cash system of accounting, entries are recorded ____________.
Which of the following has no relevance whether the receipts pertain to previous period or future period?
Which of the following is/are the essential features of accrual basis of accounting?
(I) Revenue is recognized only when cash is received.
(II) Costs are matched against revenues on the basis of relevant time period to determine periodic income.
(III) Costs which are not charged to income are carried forward and are kept under continuous review.
(IV) Receipts or incomes are recorded as and when cash is received or becomes due on the other hand payments are recorded only when cash is actually paid.
The correct answer is _________________.
According to which of the following concepts, revenue is recognised when it is earned rather than when it is collected and recognises when assets or benefits are used rather than they are paid for?
Purpose of ac an accounting system include all the following except _______________________.
______ is incompatible with the matching principle of income determination.