The 'Accrual Concept' is also known as: MCQ with Answer and Explanation
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Question #1
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The system of accounting where revenue is recognized only when cash is received is:
Correct Answer: Option B
Explanation:
Under the cash basis of accounting, transactions are recorded strictly upon the actual receipt or payment of cash.
Under the cash basis of accounting, transactions are recorded strictly upon the actual receipt or payment of cash.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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If a business purchases land for Rs 10 lakhs and its market value increases to Rs 15 lakhs, it is still recorded at Rs 10 lakhs due to:
Correct Answer: Option B
Explanation:
The Cost Concept (Historical Cost) requires assets to be recorded at their original purchase price, ignoring subsequent market value fluctuations.
The Cost Concept (Historical Cost) requires assets to be recorded at their original purchase price, ignoring subsequent market value fluctuations.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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The 'Minor' in a partnership can be admitted:
Correct Answer: Option D
Explanation:
A minor cannot be a partner but can be admitted to benefits of the firm, with limited liability.
A minor cannot be a partner but can be admitted to benefits of the firm, with limited liability.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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