Accounting - Study Mode

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[#2416] Accounting does not record non-financial transactions because of:

(A) Entity concept

(B) Accrual concept

(C) Measurement concept

(D) Double entry concept

Correct Answer

(C) Measurement concept

[#2417] Which of the following are applicable to sinking fund method of depreciation? I. Periodic depreciation is smaller than the assets, actual annual depreciable cost II. Amount of interest constantly declines due to assets, reducing balances III. Annual net incidence on profit and loss account remains constant due to incorporation of only fixed depreciation IV. Periodic depreciation is recorded through the assets account Select the correect answer using the options given below:

(A) II and IV

(B) I and III

(C) I, II and III

(D) II, III and IV

Correct Answer

(B) I and III

[#2418] Dividend is paid on . . . . . . . . capital.

(A) called

(B) paid up

(C) issued

(D) None of these

Correct Answer

(B) paid up

[#2419] Which of the following are current assets?

(A) Bank loan for three years

(B) Account receivable

(C) Long-term investments

(D) Debentures sinking fund investments

Correct Answer

(B) Account receivable

[#2420] Accounting principles are generally based on:

(A) practicability

(B) subjectivity

(C) convenience in recording

(D) applicability

Correct Answer

(A) practicability