GENERAL ACCOUNTING PRINCIPLES (GENERAL STUDIES)

Total Questions: 50

41. Principle which assumes that a business enterprise will not be liquidated in the near future

Correct Answer: (b) Going concern concept

42. Which accounting principle requires that life of a business be broken into smaller parts

Correct Answer: (b) Accounting entity

43. Under which accounting concept fixed assets are recorded at cost without considering the market price (whether low or high).

Correct Answer: (b) Historical cost principle

44. Closing stock is valued at lower of cost or market price. Which concept of accounting is applied here?

Correct Answer: (a) Prudence

45. Full form of GAAP

Correct Answer: (c) Generally Accepted Accounting Principles

46. Salary to Manager will be recorded in the books of accounts but appointment of manager is not recorded due to______

Correct Answer: (d) Money measurement

47. The fact that a business is separate and distinguishable from its owner is best exemplified by the _______ concept.

Correct Answer: (d) Business entity concept

48. To know the profitability and financial position of a business at the end of the year _______ are prepared.

Correct Answer: (b) Financial statements

49. _____ is prepared to ascertain gross profit and net profit / loss during an accounting period.

Correct Answer: (b) Income statement

50. The item discount received will appear on the

Correct Answer: (a) Credit side of Profit and loss account