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Q. 5 Identify and mention Accounting Concepts and Conventions for the below statements. 1. There is neither the intention nor the necessity to liquidate the particular business venture in the foreseeable future. 2. The personal assets of the owners or shareholders are not considered while recording and reporting the assets of the business entity. 3. The fixed asset will be recorded at cost at the time of its purchase but may systematically reduce its value by charging depreciation. 4. The principle of valuing the stock at cost or market price whichever is lower should be followed year after year to get comparable results. 5. The accountant should not anticipate income and should provide for all possible losses. 6. The decision of whether the transaction is material or not should be made by the accountant on the basis of professional experience and judgment.

Q. 5 Identify and mention Accounting Concepts and Conventions for the below statements. 1. There is neither the intention nor the necessity to liquidate the particular business venture in the foreseeable future. 2. The personal assets of the owners or shareholders are not considered while recording and reporting the assets of the business entity. 3. The fixed asset will be recorded at cost at the time of its purchase but may systematically reduce its value by charging depreciation. 4. The principle of valuing the stock at cost or market price whichever is lower should be followed year after year to get comparable results. 5. The accountant should not anticipate income and should provide for all possible losses. 6. The decision of whether the transaction is material or not should be made by the accountant on the basis of professional experience and judgment.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 1RE
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Q. 5 Identify and mention Accounting Concepts and Conventions for the below statements. 1. There is neither the intention nor the necessity to liquidate the particular business venture in the foreseeable future. 2. The personal assets of the owners or shareholders are not considered while recording and reporting the assets of the business entity. 3. The fixed asset will be recorded at cost at the time of its purchase but may systematically reduce its value by charging depreciation. 4. The principle of valuing the stock at cost or market price whichever is lower should be followed year after year to get comparable results. 5. The accountant should not anticipate income and should provide for all possible losses. 6. The decision of whether the transaction is material or not should be made by the accountant on the basis professional experience and judgment.
Transcribed Image Text:Q. 5 Identify and mention Accounting Concepts and Conventions for the below statements. 1. There is neither the intention nor the necessity to liquidate the particular business venture in the foreseeable future. 2. The personal assets of the owners or shareholders are not considered while recording and reporting the assets of the business entity. 3. The fixed asset will be recorded at cost at the time of its purchase but may systematically reduce its value by charging depreciation. 4. The principle of valuing the stock at cost or market price whichever is lower should be followed year after year to get comparable results. 5. The accountant should not anticipate income and should provide for all possible losses. 6. The decision of whether the transaction is material or not should be made by the accountant on the basis professional experience and judgment.
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