Tag: commercial applications

Questions Related to commercial applications

All of the following are limitations of Accounting Standards except ______________________.

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. The choice between different alternative accounting treatments is difficult.

  2. There may be trend towards rigidity.

  3. Accounting Standards cannot override the statute.

  4. None of the above.

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Correct Option: D

Mr. Nachiket, owner of Furniture Shop, owns a personal residence that cost Rs. 6,00,000, but has a market value of Rs.9,00,000. During preparation of the financial statement for the business, the entire value of property was ignored and was not shown in the financial statements. The principle that was followed was _________________.

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. The concept of the business entity

  2. The concept of the cost principle

  3. The concept of going concern principle

  4. The concept of duality principle

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Correct Option: A

Measurement discipline deals with __________________.

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. Identification of objects and events.

  2. Selection of scale

  3. Evaluation of dimension of measurement scale.

  4. All of the above

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Correct Option: D

An in-depth examination to detect a suspected fraud in an enterprise may be termed as ___________.

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. Internal audit

  2. Management audit

  3. Financial audit

  4. investigation

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Correct Option: D

Consider the following statements :
A mutual fund helps the investor in securing -
1. Professional management 
2. Diversification of risk
3. Steady appreciation
4. Lower cost of operation
Of these statement following is correct :

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. 1, 2, 3 and 4

  2. 1, 2 and 4

  3. 2 and 3

  4. 3 and 4

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Correct Option: A

Information Gatekeepers come under ____________ sources.

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. Documentary

  2. Human

  3. Institutional

  4. Neo-conventional

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Correct Option: A

Suppose, a Cement manufacturing company allows a post supply discount of ' 5/-Cores to his Distributor without any prior agreement to that effect or without disclosing the same at the time of supply. Whether, it is a Deemed Supply or Not?

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. Yes

  2. No

  3. Subject to the Individual Circumstances

  4. None of the Above

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Correct Option: A

Accounting principles are generally based on _________.

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. Practicability

  2. Subjectivity

  3. Convenience in Recording

  4. Applicability

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Correct Option: A
Explanation:

Certain accounting principle concepts and conventions are formulated which are not static and are adaptable to changes according to the changing need of the business. 

Accounting principles are generally based upon _________________.

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. Practicability

  2. Subjectivity

  3. Convenience in recording

  4. None of the above

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Correct Option: A
Explanation:

Accounting principles can be defined as rule of conduct or action. These are the general laws used with the theory and practices of accounting. These are broad guidelines and adaptability of the same depends on the the internal characteristics of the firm. 

Accounting principles are divided into two types. These are _________.

commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

  1. Accounting Concepts

  2. Accounting Conventions

  3. Accounting Standards

  4. Accounting Concepts & Accounting Conventions

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Correct Option: D
Explanation:

Accounting principles can be defined as rule of conduct. These are general laws used with the theory and practices of accounting. These are the broad guidelines, and adaptability of the same depends on the nature of the firm or business.


These principles can be classified into two parts:
1) Accounting Concepts
2) Accounting Conventions