Tag: basis of accounting system

Balance of cash column in cash book has ____________.

Which of the following is/are the essential features 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:

At the end of the accounting year, ______are to be passed for outstanding/prepaid expenses, accrued income/income received in advance etc. 

Which of the following is/are the essential features of accrual basis of accounting?

Non-monetary events like, death, dispute, sentiments, efficiency etc. are _______ in the books, even though these may have a great effect. 

In accrual system of accounting ______________________.

Which of the following is a formal written promise to pay a definite sum of money on demand or at a fixed or determinable future date?

The total amount column of the purchases return book is _______________.

______ is an intagible real account.

____ period is normally adopted for accounting purpose.