Question

Match List-I with List-II and select the correct answer using the codes given the lists.

List-I	List-II
I. Uncertain liability	(a) Amortisation
II. Expiry of tangible asset	(b) Long-term liability
III. Basis for all valuations in the balance sheet	(c) Research and development
IV. Accounting standard-As-$8$	(d) Estimated obligation
	(e) Conservation convention

• A. I-(e), II-(a), III-(b), IV-(c)
• B. I-(d), II-(c), III-(e), IV-(a)
• C. I-(e), II-(c), III-(d), IV-(a)
• D. I-(d), II-(a), III-(e), IV-(c)

Answer 1

The correct option is D I-(d), II-(a), III-(e), IV-(c)

Option D is the Correct one.

AS 8 - Accounting for Research & Development
Amortization: the action or process of gradually writing off the initial cost of an asset.

Provisions are present obligations or liabilities but with uncertain amounts. The amounts can only be measured with a substantial estimation. Contingent liabilities are possible obligations.

This accounting convention is generally expressed as to “anticipate all the future losses "

This convention generally applies to the valuation of current assets as they are basis for preparing financial statements to facilitate comparison of financial statements on period to period basis.