Question
A trader maintains accounts on cash basis and records revenue only when received. Which fundamental accounting assumption is not followed?
More Forming base to Accounts Questions
- Which accounting principle states that revenue should be recognized in the accounting period in which it is earned?
- Which of the following is a "Capital Expenditure"?
- Inflation caused by an increase in the prices of inputs (e.g., wages, oil) is called:
- "Window Dressing" in accounting refers to:
- A company purchases machinery for ₹10 lakhs and incurs ₹1 lakh on its installation. The accountant records the total ₹11 lakhs under the fixed asset head. ...
- The "Matching Principle" requires that:
- XYZ Ltd. incurred R&D expenses of ₹20 lakhs for developing a new product. The product has not yet reached the commercialisation stage. How should the amoun...
- Which accounting principle/concept states that revenue should be recognized when it is earned, regardless of when cash is received?
- An enterprise follows accrual basis of accounting and records revenue when it is earned and expenses when incurred. A client makes an advance payment of ₹1...
- Gross Domestic Product (GDP) is defined as the total value of all:
Hey! Ask a query
Please enter email id
The email must be a valid email address.
Please enter Mobile Number
Please enter valid Mobile Number
Please enter your Doubt
