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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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