CA Foundation Exam > CA Foundation Notes > Principles and Practice of Accounting > Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates
Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates | Principles and Practice of Accounting - CA Foundation PDF Download
(Summary)
- Measurement is vital aspect of accounting. Primarily transactions and events are measured in terms of money.
- There are three elements of measurement:
(i) Identification of objects and events to be measured;
(ii) Selection of standard or scale to be used;
(iii) Evaluation of dimension of measurement standard or scale.
- There are four generally accepted measurement bases or valuation principles. These are:
(i) Historical Cost;
(ii) Current Cost;
(iii) Realizable Value;
(iv) Present Value.
(Question with Answer)
1. Ques (i): Measurement discipline deals with
(a) Identification of objects and events.
(b) Selection of scale.
(c) Both (a) and (b)
Asn: (c)
Ques (ii): All of the following are valuation principles except
(a) Historical cost.
(b) Present value.
(c) Future value.
Ans: (c)
Ques (iii): Book value of machinery on 31st March, 2016 Rs 10,00,000
Market value as on 31st March, 2016 if sold Rs 11,00,000
As on 31st March, 2016, if the company values the machinery at Rs 11,00,000, which of the following valuation principle is being followed?
(a) Historical Cost.
(b) Present Value.
(c) Realisable Value.
Ans: (c)
Ques 2: Mohan purchased a machinery amounting Rs 10,00,000 on 1st April, 2001. On 31st March, 2016, similar machinery could be purchased for Rs 20,00,000 but the realizable value of the machinery (purchased on 1.4.2001) was estimated at Rs 15,00,000. The present discounted value of the future net cash inflows that the machinery was expected to generate in the normal course of business, was calculated as Rs 12,00,000.
Ques (i): The current cost of the machinery is
(a) Rs 10,00,000.
(b) Rs 20,00,000.
(c) Rs 15,00,000.
Ans: (b)
Ques (ii): The present value of machinery is
(a) Rs 10,00,000.
(b) Rs 20,00,000.
(c) Rs 12,00,000.
Ans: (c)
Ques (iii): The historical cost of machinery is
(a) Rs 10,00,000.
(b) Rs 20,00,000.
(c) Rs 15,00,000.
Ans: (a)
Ques (iv) The realizable value of machinery is
(a) Rs 10,00,000.
(b) Rs 20,00,000.
(c) Rs 15,00,000.
Ans: (c)
The document Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates | Principles and Practice of Accounting - CA Foundation is a part of the CA Foundation Course Principles and Practice of Accounting.
All you need of CA Foundation at this link: CA Foundation
|
68 videos|160 docs|83 tests
|
FAQs on Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates - Principles and Practice of Accounting - CA Foundation
| 1. What is accounting as a measurement discipline? |  |
Ans. Accounting as a measurement discipline refers to the practice of quantifying and recording financial information in a systematic and consistent manner. It involves measuring and reporting the economic activities of an entity, such as its assets, liabilities, revenues, and expenses, in order to provide useful information for decision-making and financial analysis.
| 2. What are valuation principles in accounting? | |
Ans. Valuation principles in accounting refer to the rules and guidelines used to determine the monetary value of assets, liabilities, and equity. These principles help accountants assign a fair and accurate value to various items reported in the financial statements. Valuation principles include concepts such as historical cost, market value, net realizable value, and present value, among others.
| 3. What are accounting estimates? | |
Ans. Accounting estimates are approximations made by accountants when preparing financial statements. They are used when it is not possible to obtain precise measurements due to uncertainties or the inability to gather all relevant information. Examples of accounting estimates include the estimation of bad debts, useful lives of assets, fair value of investments, and provision for warranty expenses.
| 4. How do accounting estimates impact financial statements? | |
Ans. Accounting estimates can have a significant impact on financial statements as they can affect the reported amounts of assets, liabilities, revenues, and expenses. For example, an increase in the estimated useful life of an asset can result in lower depreciation expenses and higher net income. Similarly, a higher estimated provision for bad debts can reduce the reported accounts receivable and net income.
| 5. How are accounting estimates different from accounting policies? | |
Ans. Accounting estimates and accounting policies are two different aspects of financial reporting. Accounting estimates involve making approximations or judgments about uncertain events or conditions, while accounting policies are the specific principles and methods used to recognize, measure, and present financial information. Accounting estimates are applied when there is a lack of precise data, while accounting policies are consistently applied rules for similar transactions or events.
Related Exams
About this Document
|
4.86/5 Rating |
|
Nov 23, 2024 Last updated |
Document Description: Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates for CA Foundation 2024 is part of Principles and Practice of Accounting preparation.
The notes and questions for Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates have been prepared according to the CA Foundation exam syllabus. Information about Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates covers topics
like and Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates Example, for CA Foundation 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates.
Introduction of Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates in English is available as part of our Principles and Practice of Accounting
for CA Foundation & Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates in Hindi for Principles and Practice of Accounting course.
Download more important topics related with notes, lectures and mock test series for CA Foundation
Exam by signing up for free. CA Foundation: Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates | Principles and Practice of Accounting - CA Foundation
Description
Full syllabus notes, lecture & questions for Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates | Principles and Practice of Accounting - CA Foundation - CA Foundation | Plus excerises question with solution to help you revise complete syllabus for Principles and Practice of Accounting | Best notes, free PDF download
Information about Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates
In this doc you can find the meaning of Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates defined & explained in the simplest way possible. Besides explaining types of
Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates theory, EduRev gives you an ample number of questions to practice Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates tests, examples and also practice CA Foundation
tests
|
68 videos|160 docs|83 tests
|
Download as PDF
|
Explore Courses for CA Foundation exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
video lectures
,Summary
,Free
,Extra Questions
,Unit 7: Summary - Accounting as a Measurement Discipline
,Important questions
,Valuation Principles
,Exam
,mock tests for examination
,past year papers
,ppt
,Unit 7: Summary - Accounting as a Measurement Discipline
,Valuation Principles
,Objective type Questions
,MCQs
,Valuation Principles
,Accounting Estimates | Principles and Practice of Accounting - CA Foundation
,Accounting Estimates | Principles and Practice of Accounting - CA Foundation
,Sample Paper
,Accounting Estimates | Principles and Practice of Accounting - CA Foundation
,study material
,Viva Questions
,shortcuts and tricks
,Previous Year Questions with Solutions
,Semester Notes
,practice quizzes
,Unit 7: Summary - Accounting as a Measurement Discipline
;
Additional Information about Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates for CA Foundation Preparation
Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates Free PDF Download
The Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates is an invaluable resource that delves deep into the core of the CA Foundation exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates now and kickstart your journey towards success in the CA Foundation exam.
Importance of Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates
The importance of Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates cannot be overstated, especially for CA Foundation aspirants.
This document holds the key to success in the CA Foundation exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates Notes
Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates Notes on EduRev are your ultimate resource for success.
Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates CA Foundation Questions
The "Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates CA Foundation Questions" guide is a valuable resource for all aspiring students preparing for the
CA Foundation exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates on the App
Students of CA Foundation can study Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Unit 7: Summary - Accounting as a Measurement Discipline, Valuation Principles, Accounting Estimates is prepared as per the latest CA Foundation syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup