SHORT ANSWER QUESTIONS
Q1. What do you mean by accounting Concepts?
Q2. “Revenue earned and cost of earning that revenue should be properly identified for a period”. Explain this statement.
Q3. What are Accounting Concepts? Explain any two of them.
Q4. Explain the business entity principle with example.
Q5. “Capital is a liability for the business.” Explain this statement with the principle applied.
Ans: Explain ‘Business entity Principle.’
Q6. Why is it necessary for accounts to assume that a business entity will remain a going concern?
Ans: This assumption provides the very basis for showing the value of assets in the balance sheet because we assume that these assets are not going to be sold in near future.
Q7. What is the basic accounting equation?
Ans: Asset= Liabilities + capital
Q8. Explain the meaning and significance of ‘money measurement principle’.
Q9. Discuss the principle based on the premise” do not anticipate profits but provide for all losses.”
Ans: Discuss the principle of Prudence.
Q10. Explain any two of the following principles:
Money Measurement Principle
Business Entity principle
Q11. Explain the following:
(i) Dual Aspect Principle
(ii) Accrual concept
(iii) Going concern Concept
(iv) Cost Principle
Q12. Explain the meaning of any three of the following terms:
(i) Full Disclosure
Q13. “Every transaction had debit and credit aspects.” Explain.