Advertisements
Advertisements
Question
"Fixed assets should be valued at the market price." Comment.
Solution
The statement is wrong. The fixed assets should be valued at cost less depreciation. Fixed assets should not be valued at market price because they are not meant for resale.
RELATED QUESTIONS
What does GAAP stand for in Accounting?
Explain the Money Measurement Concept.
Justify the following:
Every transaction is recorded in at least three accounts.
GAAP stands for ______.
According to this principle, revenue is deemed to be realised when the goods have been transferred or the services have been rendered to a customer.
With reference to the concept of accounting only those transactions are recorded in accounts which can be expressed in terms of money. Justify either for or against.
Every transaction has two effects. (with reference to the concept of Accounting). Give a reason either for or against.
"The capital provided by the owner is treated as a liability of the firm." Explain the concept on which the above depends.
Explain The Dual Aspect Principle.
"The principle of full disclosure and principle of materiality are contradictory." Comment.
