Question
Name the accounting concept violated, if any, in each of the following situations and explain them in detail. a) The Rs 1, 00,000 figures for
Name the accounting concept violated, if any, in each of the following situations and explain them in detail.
a) The Rs 1, 00,000 figures for inventory on a Balance Sheet is the amount for which it could be sold on the balance sheet date.
b) The Balance Sheet of a retail store which has experienced a gross profit of 40% on sales contains an item of merchandise inventory of Rs. 1,15,00,000 Merchandise inventory (at cost) Rs 69,00,000.
c) Company M does not charge annual depreciation, preferring instead to show the entire difference between original cost and proceeds of sale as a gain or loss in the period when the assets is sold. It has followed this practice for many years.
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Chemistry The Central Science
Authors: Theodore Brown, Eugene LeMay, Bruce Bursten, Catherine Murphy, Patrick Woodward
12th edition
321696727, 978-0132175081, 978-0321696724
