(English Medium) ICSE Class 10 - CISCE Question Bank Solutions for Commercial Applications

GAAP stands for ______.

Accounting principles are necessary due to which of the following reasons?

______ is the language of business.

According to this concept, a business firm is treated as a unit separate and distinct from its owners.

On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.

This concept assumes that the business will continue to exist for a long time in the future.

It is due to this concept that financial statements are prepared at regular intervals, generally one year.

This principle suggests that every debit has a corresponding and equal credit.

According to this principle, accounts should be prepared in such a way that all the material information required by users of financial statements is clearly disclosed.

According to this principle, cost of a particular period should be charged from the revenue of same period only.

According to this principle, revenue is deemed to be realised when the goods have been transferred or the services have been rendered to a customer.

According to Business Entity Concept:

What is business entity concept of accounting?

“Firms live forever.” Explain with reference to the concept of accounting.

What is meant by going concern concept of Accounting.

Name the basic principles of accounting.

“Accounts should disclose all material information” (with reference to the concept of accounting). Justify either for or against by giving two reasons.

With reference to the concept of accounting only those transactions are recorded in accounts which can be expressed in terms of money. Justify either for or against.

“Every transaction has two effects.” (with reference to the concept of Accounting). Give a reason either for or against.

“The capital provided by the owner is a liability of the firm.” Answer with reference to the concept of Accounting.