Question
A manufacturing firm includes administrative overheads
and interest costs in inventory valuation during a slowdown. Which accounting principle is violated?Solution
Inventory must not include abnormal costs like interest or administrative overheads unrelated to production. Including them inflates asset values, violating the prudence concept.
As per the Companies Act, 2013, which of the following companies must appoint a full-time Company Secretary?
State which statement is incorrect:
Following information has been provided by a contractor for the year ending 31-3-2020.
(a) Total expenditure till 31-3-2020 is Rs. 5,000.
...
Under the Written Down Value (WDV) method of depreciation, the WDV of an asset is always:
Section ______ of the Income Tax Act, 1961, defines the term ‘Assessment Year’.
Determine a firm's total assets turnover, if its net profits margin is 8%, total assets are 8,00,000 and the return on investment is 14%
In the context of international financial regulation, the Financial Action Task Force (FATF) is primarily responsible for:
ABC Ltd. reports a net profit after tax of ₹6,00,000 for FY 2024–25. Depreciation expense is ₹1,20,000. Accounts receivable increased by ₹80,000...
Depreciation is appearing in the 'Trial Balance' of a firm. At the time of preparing 'Annual Accounts', it should be shown in:
A deferred revenue expenditure is one which:
