MyQuestionIcon

2

You visited us 2 times! Enjoying our articles? Unlock Full Access!

Preparing CFS-Direct Method

The underlyin...

Question

The underlying accounting principle(s) necessitating amortisation of intangible asset(s) is / are ________________.

A

Cost concept

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

Realisation concept

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Matching concept

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

D

Both (a) and (c)

No worries! We‘ve got your back. Try BYJU‘S free classes today!

E

Both (b) and (c)

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B Matching concept
Amortization of intangible assets means reducing the value of the asset in a systematic manner and charging that value to the revenue of that year.
The matching Concept suggests for amortization or depreciation of the assets.
Matching Concept states that all expenses matched with the revenue of that period should only be taken into consideration

Suggest Corrections

thumbs-up

0

Similar questions

Q. The underlying accounting principle(s) necessitating amortization of intangible asset(s) is/are __________.

Q. Book Value of assets (other than cash and bank) transferred to Realisation Account is ₹ 1,00,000. 50% of the assets are taken over by a partner Atul, at a discount of 20%; 40% of the remaining assets are sold at a profit of 30% on cost; 5% of the balance being obsolete, realised nothing and remaining assets are handed over to a Creditor, in full settlement of his claim.
You are required to record the Journal entries for realisation of assets.

Q. Book Value of assets (other than cash and bank) transferred to Realisation Account is Rs. 1,00,000. 50% of the assets are taken over by a partner atul, at a discount of 20%, 40% of the remaing assets are sold at a profit of 30% on cost; 5% of the balance being obsolete, realised nothing and remaing assets are handed over to a Creditor, in full settlement of his claim.
You are required to record the Journal entires for realisation of assets.

Q. Amortisation is a decrease in the value of assets.

Q. Charging a period for the proportionate cost of an Intangible asset is termed as:

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Introduction to Cash Flow Statement

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Preparing CFS-Direct Method

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon