Question
If a firm has been changing its depreciation policy
every year, it is violating the_______ concept/principle of accounting.Solution
The sole purpose of the consistency principle, or consistency concept, is to ensure that transactions or events are recorded in the same way, from oneĀ accounting yearĀ to the next. When talking about different accounting methods, this can include anything fromĀ cash vs accrual accounting, and usingĀ LIFOĀ vsĀ FIFOĀ methods.
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If the capital of a business is 230000, liabilities are 50000, loss 80000, then asset will be?
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Under which condition will no depreciation be charged on a fixed asset during a financial year?
Which asset is not eligible for depreciation under the Income Tax Act?
A company purchases machinery for ā¹50 lakhs with a useful life of 10 years and salvage value of ā¹5 lakhs. The company uses straight-line depreciatio...
A machinery costing ā¹10 lakhs has a useful life of 5 years and a salvage value of ā¹1 lakh. Using the straight-line method, the firm changes the usef...
Under which condition will no depreciation be charged on a fixed asset during a financial year?
If a firm has been changing its depreciation policy every year, it is violating the_______ concept/principle of accounting.
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