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Theory Base of Accounting Questions for Practice - Short Answers Solutions
- Q1: Why is it necessary for accountants to assume that business entity will remain a going concern?
- Q1: Why is it necessary for accountants to assume that business entity will remain a going concern?
- Q2: When should revenue be recognised? Are there exceptions to the general rule?
- Q2: When should revenue be recognised? Are there exceptions to the general rule?
- Q3: What is the basic accounting equation?
- Q3: What is the basic accounting equation?
- Q4: The realisation concept determines when goods sent on credit to customers are to be included in the sales figure for the purpose of computing the profit or loss for the accounting period. Which of the following tends to be used in practice to determine when to include a transaction in the sales figure for the period. When the goods have been: Give reasons for your answer.
- Q4: The realisation concept determines when goods sent on credit to customers are to be included in the sales figure for the purpose of computing the profit or loss for the accounting period. Which of the following tends to be used in practice to determine when to include a transaction in the sales figure for the period. When the goods have been: Give reasons for your answer.
- Q5(i): Complete the following worksheet: If a firm believes that some of its debtors may ‘default’, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the ___________ concept.
- Q5(i): Complete the following worksheet: If a firm believes that some of its debtors may ‘default’, it should act on this by making sure that all possible losses are recorded in the books. This is an example of the ___________ concept.
- Q5(ii): Complete the following worksheet: The fact that a business is separate and distinguishable from its owner is best exemplified by the ___________ concept.
- Q5(ii): Complete the following worksheet: The fact that a business is separate and distinguishable from its owner is best exemplified by the ___________ concept.
- Q5(iii): Complete the following worksheet: Everything a firm owns, it also owns out to somebody. This co-incidence is explained by the ___________ concept.
- Q5(iii): Complete the following worksheet: Everything a firm owns, it also owns out to somebody. This co-incidence is explained by the ___________ concept.
- Q5(iv): Complete the following worksheet: The ___________ concept states that if straight line method of depreciation is used in one year, then it should also be used in the next year.
- Q5(iv): Complete the following worksheet: The ___________ concept states that if straight line method of depreciation is used in one year, then it should also be used in the next year.
- Q5(v): Complete the following worksheet: A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increased. Normal accounting procedure is to ignore this because of the __________.
- Q5(v): Complete the following worksheet: A firm may hold stock which is heavily in demand. Consequently, the market value of this stock may be increased. Normal accounting procedure is to ignore this because of the ___________.
- Q5(vi): Complete the following worksheet: If a firm receives an order for goods, it would not be included in the sales figure owing to the __________.
- Q5(vi): Complete the following worksheet: If a firm receives an order for goods, it would not be included in the sales figure owing to the ___________.
- Q5(vii): Complete the following worksheet: The management of a firm is remarkably incompetent, but the firms accountants can not take this into account while preparing book of accounts because of ___________ concept.
- Q5(vii): Complete the following worksheet: The management of a firm is remarkably incompetent, but the firms accountants can not take this into account while preparing book of accounts because of ___________ concept.
Other Exercises for CBSE - Class 11 Accountancy Theory Base of Accounting
- Theory Base of Accounting Class 11 Activities
- Theory Base of Accounting Class 11 Activity
- Theory Base of Accounting Class 11 Activity 1
- Theory Base of Accounting Class 11 Activity 2
- Theory Base of Accounting Class 11 Do it yourself
- Theory Base of Accounting Class 11 Questions for Practice
- Theory Base of Accounting Class 11 Questions for Practice - Long Answers
- Theory Base of Accounting Class 11 Test Your Understanding - I
- Theory Base of Accounting Class 11 Test Your Understanding - II
Chapters in CBSE - Class 11 Accountancy
- Unit 1-Financial Accounting(Part A)Theoretical Framework
- Introduction to Accounting
- Recording of Transactions – I
- Recording of Transactions – II
- Bank Reconciliation Statement
- Trial Balance and Rectification of Errors
- Depreciation, Provisions and Reserves
- Bills of Exchange
- Financial Statements – I
- Financial Statements – II
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