Question

Different accounting policies can be adopted in following area/areas __________.

• A. Providing depreciation
• B. Valuation of inventories
• C. Valuation of investments
• D. All of these

Answer 1

The correct option is D All of these

Areas where accounting policy adopted

(a) Methods of depreciation, depletion and amortization;

(b) Treatment of expenditure during construction;

(c) Conversion or translation of foreign currency items;

(d) Valuation of inventories;

(e) Treatment of goodwill;

(f) Valuation of investments;

(g) Treatment of retirement benefits;

(h) Recognition of profit on long-term contracts;

(i) Valuation of fixed assets;

(j) Treatment of contingent liabilities.