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Chapters
2: Marketing mix - 4 P's
3: Advertising and Brand Promotion
4: Sales and Selling Process
▶ 5: Generally Accepted Accounting Principles (GAAP)
6: Financial Accounting and Reporting
7: Banking and Bank Transactions
8: Fundamental Concepts of Cost
9: Importance of Human Resources
10: Recruitment, Selection and Training
11: Public Relations
12: Issues of the Environment
![Goyal Brothers Prakashan solutions for Commercial Applications [English] Class 10 ICSE chapter 5 - Generally Accepted Accounting Principles (GAAP) - Shaalaa.com](/images/commercial-applications-english-class-10-icse_6:24f6f4a7b9ed4bc7bafe97f5daf365e6.jpg "Goyal Brothers Prakashan solutions for Commercial Applications [English] Class 10 ICSE chapter 5 - Generally Accepted Accounting Principles (GAAP)")
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Solutions for Chapter 5: Generally Accepted Accounting Principles (GAAP)
Below listed, you can find solutions for Chapter 5 of CISCE Goyal Brothers Prakashan for Commercial Applications [English] Class 10 ICSE.
Goyal Brothers Prakashan solutions for Commercial Applications [English] Class 10 ICSE 5 Generally Accepted Accounting Principles (GAAP) EXERCISES [Pages 84 - 87]
MULTIPLE CHOICE QUESTIONS.
Book keeping is a part of accounting, therefore its scope is ______ where as scope of accounting is ______.
Wider, narrow
Narrow, wider
More, less
None of these
______ is the art and science of recording transactions while ______ is the art and science of recording, classifying and summarising transactions.
Book keeping, accounting
Accounting, book keeping
Financial recording, accounting
Accounting, journalising
The purposes of financial recording is ______.
Keeping records
Calculating profit or loss
Ascertaining financial position
All of these
Which of these is not a purpose of financial recordings?
Ascertaining financial position
Making accounting information available to stakeholders
Journal
None of these
The accounting cycle consists of ______.
Journal
Ledger
Trial balance
All of these
It is the first stage of maintaining accounts and provides no conclusions.
Accounting
Book keeping
Book maintaining
Book recording
It is the second stage and provides conclusions.
Accounting
Book keeping
Book maintainin
Book recording
It refers to a complete sequence of accounting activities.
Accounting cycle
Accounting sequence
Accounting transactions
Accounting
The first step in accounting cycle is ______.
Recording of transactions in journal
Preparing income statement
Posting entries in ledger
Preparing balance sheet
Accounting cycle ends with the ______.
Recording of transactions in journal
Preparing income statement
Posting entries in ledger
Preparation of balance sheet
GAAP stands for ______.
Governor accepted accounting principles
Generally avoided accounting principles
Generally accepted accounting principles
Governor avoided accounting principles
Accounting principles are necessary due to which of the following reasons?
To identify and classify economic transactions for meaningful presentation.
To ensure uniformity in accounting records.
These principles represent a scientific approach to financial statements.
All of these
______ is the language of business.
Accounting
Book keeping
Book maintaining
Book recording
According to this concept, a business firm is treated as a unit separate and distinct from its owners.
Money measurement concept
Accounting period concept
Business entity concept
Realisation concept
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
Money measurement concept
Accounting period concept
Business entity concept
Realisation concept
This concept assumes that the business will continue to exist for a long time in the future.
Money measurement concept
Going concern concept
Business entity concept
Realisation concept
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
Money measurement concept
Accounting period concept
Business entity concept
Realisation concept
This principle suggests that every debit has a corresponding and equal credit.
Matching principle
Principle of full disclosure
Dual aspect principle
Realisation concept
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.
Matching principle
Principle of full disclosure
Dual aspect principle
Realisation concept
According to this principle, cost of a particular period should be charged from the revenue of same period only.
Matching principle
Principle of full disclosure
Dual aspect principle
Realisation concept
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.
Matching principle
Principle of full disclosure
Dual aspect principle
Realisation concept
This principle states that accounting procedures and methods should remain consistent from one year to another.
Materiality
Consistency
Conservatism
Timeliness
According to this principle, record all anticipated losses but ignore all anticipated gains. Industry practice.
Materiality
Consistency
Conservatism
Timeliness
This principle states that the financial statements should be prepared quickly at the end of the accounting period.
Materiality
Consistency
Conservatism
Timeliness
This principle is an exception to the principle of full disclosure.
Materiality
Consistency
Conservatism
Timeliness
According to Business Entity Concept:
Distinction should be made between fixed assets and current assets.
Distinction should be made between business transactions and personal transactions.
Distinction should be made between Capital expenditure and revenue expenditure.
Accounting equation is always true.
SHORT-ANSWER QUESTIONS.
Give two differences between book-keeping and accounting.
What is accounting cycle?
What is business entity concept of accounting?
"Firms live forever." Explain with reference to the concept of accounting.
Closing stock is always valued at market price. Justify for or against by citing two reasons.
What is meant by going concern concept of Accounting.
Explain the principle of materiality.
Name the basic principles of accounting.
Every transaction has four effects on accounting records. Give two reasons either for or against.
State four stages of Accounting cycle.
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.
LONG-ANSWER QUESTIONS.
What does GAAP stand for in Accounting?
Explain 'Matching Concept' of GAAP.
Explain the principle of Timeliness.
Discuss in brief the basic principles of accounting.
"The capital provided by the owner is treated as a liability of the firm." Explain the concept on which the above depends.
"Principle of consistency is a modifying principle." Comment.
"Fixed assets should be valued at the market price." Comment.
Give two differences between book-keeping and accounting.
"Every transaction affects at least three accounts." Comment.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
Name and explain the accounting convention which says record all anticipated losses but ignore all anticipated gains.
Explain the money measurement principle of accounting.
Accounts should disclose all material information (with reference to the concept of accounting). Justify either for or against by giving two reasons.
Explain any two basic concepts of accounting.
Explain matching principle of accounting.
Explain the Principle of Prudence.
Explain the Money Measurement Concept.
Explain The Dual Aspect Principle.
What is meant by going concern concept of Accounting.
Explain Accounting Period Concept.
Explain matching principle of accounting.
What is business entity concept of accounting?
Write short note on the going concern concept.
Explain the money measurement principle of accounting.
Explain The Dual Aspect Principle.
What is business entity concept of accounting?
Explain The Dual Aspect Principle.
Goyal Brothers Prakashan solutions for Commercial Applications [English] Class 10 ICSE 5 Generally Accepted Accounting Principles (GAAP) QUESTION BANK [Pages 87 - 92]
Define the term Book-keeping.
What is accounting?
Give two differences between book-keeping and accounting.
What is accounting cycle?
Explain the purpose of financial recording.
Give two differences between book-keeping and accounting.
Explain the accounting cycle.
Define the term GAAP.
Why are Generally Accepted Accounting Principles (GAAP) needed?
What is business entity concept of accounting?
Explain the Money Measurement Concept.
What is meant by going concern concept of Accounting.
Explain Accounting Period Concept.
Explain The Dual Aspect Principle.
Explain matching principle of accounting.
Explain the complete disclosure principle.
Explain the revenue principle.
Explain the expense principle.
Explain the realisation principle.
"The capital provided by the owner is treated as a liability of the firm." Explain the concept on which the above depends.
"Fixed assets should be valued at the market price." Comment.
"Every transaction affects at least three accounts." Comment.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
Explain the principle of materiality.
Explain the principle of consistency.
Explain the Principle of Prudence.
Explain the principle of Timeliness.
Explain the principle of industry practice.
"Principle of consistency is a modifying principle." Comment.
"Firms live forever." Explain with reference to the concept of accounting.
Every transaction has four effects on accounting records. Give two reasons either for or against.
Accounts should disclose all material information (with reference to the concept of accounting). Justify either for or against by giving two reasons.
Closing stock is always valued at market price. Justify for or against by citing two reasons.
What does GAAP stand for in Accounting?
Name any four concepts of GAAP.
Discuss in brief the basic principles of accounting.
Explain the accounting conventions.
"The principle of full disclosure and principle of materiality are contradictory." Comment.
Solutions for 5: Generally Accepted Accounting Principles (GAAP)
Goyal Brothers Prakashan solutions for Commercial Applications [English] Class 10 ICSE chapter 5 - Generally Accepted Accounting Principles (GAAP)
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Concepts covered in Commercial Applications [English] Class 10 ICSE chapter 5 Generally Accepted Accounting Principles (GAAP) are Generally Accepted Accounting Principles (GAAP), Meaning and Purposes of Accounting, Accounting Cycle, Accounting Conventions Or Modifying Principles, Book-Keeping vs. Accountancy.
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