Name the accounting principle involved/violated/affected in the following: (i) The firm changes method of depreciation. (ii) The
Question:
Name the accounting principle involved/violated/affected in the following:
(i) The firm changes method of depreciation.
(ii) The firm does not consider unused stationery as asset.
(iii) The firm follows the policy of expensing all office equipments of less than ₹5,000.
(iv) Capital is recorded on liabilities side.
(v) Expenses are recognised as and when they are incurred and not when they are paid.
(vi) Plant and machinery is valued at the current market price.
(vii) Profit earned by owner in selling his personal house is not recorded in the firm’s books.
(viii) Anticipated profited are ignored.
(ix) Massive advertisement expenditure incurred in launching a new product is not charged as an expense of one accounting year.
(x) Accounting is not a record of all business events.
Step by Step Answer:
Management Accounting Text Problems And Cases
ISBN: 9781259026683
6th Edition
Authors: M Y Khan, P K Jain