Accrual Basis of Accounting
Trending Questions
Write Any Two Limitations of Accounting.
Explain the accrual concept with the help of an example.
Define book-keeping, accounting, and accountancy? With the help of the diagram explain the relationship between book-keeping, accounting, and accountancy.
What are ledger entries?
"The role of accounting has changed over the period of time." Do you agree? Explain.
According to accrual concept of accounting, financial or business transaction is recorded:
When profit is computed
When cash is received or paid
When Transaction occurs
When balance sheet is prepared
What is the basic objective of accounting?
In accounts recording is made of _________.
The John Marketing Company provides advertising services to an investment company in year A but receives advertising fee in year B. The John Marketing Company recognizes this revenue in year A. This action of John Marketing Company is justified by:
Revenue recognition principle
Going concern concept
Accrual Basis of accounting
Economic entity concept
What are the 6 steps of accounting?
What is meant by the maturity of a bill of exchange?
Define accounting.
A trader has made a sale of Rs.75, 500 out of which cash sales amounted to Rs.25, 500. He is of the view that in the Financials Statements for the year, he shall show a sales of Rs 75, 500 & trade receivables of Rs.50, 000. Which concept is followed by him?
Cash basis of accounting
Accrual Basis of accounting
Both A & B
None of the above
Are there rules in recording business transactions?
Why is it important to adopt a consistent basis for the preparation of financial statements? Explain.
Which financial statement would you utilise to determine whether a company will be able to pay liabilities that are due in 30 days?
Income statement.
Balance sheet.
Statement of cash flows
Statement of stockholders’ equity.
Incomes and expenditures need to be recorded in books of account as and when there is any transaction without having to wait till their payment or receipt.
Name this concept.
Double Entry Bookkeeping
Cash basis
Accrual basis
Objectivity
Briefly explain the set of SQL statements to produce the receipts side of a cash book for Model-I.
A sold goods to B for 40, 000 on January 15, 2016, and drew a bill payable after 2 months. B accepted it and returned to A. On the due date, A sent someone to realise the payment but B refused to honour the bill. Identify the value missing in the above case.
Alan, a sports shop owner bought cricket bats in May for which he needs to pay in June. When should Alan record this transaction under accrual basis of accounting?
May
June
Either a or b
It's not a transaction
(a) There will be no more supplies (b) unless all arrears of payment (c) were cleared by next Monday. (d) No ERROR.
- a
- b
- d
- c
What are the current liabilities ? give examples.
- May
- June
- April
- December
Which concept covers the requirement to adhere to the format of Financial Statements?
Matching
Full Disclosure
Format concept
Consistency
- Single entry system
- Double entry system
- All of the above
- Mahajani system
- on the debit side of Trading Account
- on the liabilities side of the Balance Sheet
- on the credit side of P&L A/c
- on the debit side of Profit and Loss Account
Which of the following is correct regarding advance from customers received as at end of the financial year?
It shall be shown under current liabilities
It shall be shown under equity capital
It shall not be shown in the balance sheet
It shall be shown under current assets
- Analyse, enter, post, adjust, prepare, close
- Prepare, enter, post, adjust, analyse, close
- Post, enter, analyse, prepare, close, adjust
- Enter, post, close, prepare, adjust, analyse
- Protecting and controlling strategic policy formulation
- Preparation of financial statements
- All of the above
- Comparison of results
