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Cycle 9 Theory Base Objective Asmnt-1

This document contains an overview of key accounting concepts and principles covered in a Class 11 Accounting notes. It defines concepts like GAAP, conservatism, going concern, full disclosure, accounting period, revenue realization, consistency, materiality, matching, money measurement, duality, objectivity, and prudence. It also identifies the accounting principles applied in examples like valuing closing stock, recording fixed assets, and treating proprietor's personal expenses.

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Yash Dawani
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63 views1 page

Cycle 9 Theory Base Objective Asmnt-1

This document contains an overview of key accounting concepts and principles covered in a Class 11 Accounting notes. It defines concepts like GAAP, conservatism, going concern, full disclosure, accounting period, revenue realization, consistency, materiality, matching, money measurement, duality, objectivity, and prudence. It also identifies the accounting principles applied in examples like valuing closing stock, recording fixed assets, and treating proprietor's personal expenses.

Uploaded by

Yash Dawani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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DELHI PUBLIC SCHOOL - BOPAL, AHMEDABAD

TERM- 2 , CYCLE-8 NOTES 2 (2022-23)


CLASS: XI
SUBJECT: ACCOUNTANCY
TOPIC: THEORY BASE OF ACCOUNTING
1- The rules and guidelines used in preparing accounting reports are called………….(GAAP)
2- The policy of “anticipating no profits and provide for all possible losses” arises due to
convention of ……….(conservatism)
3- A business unit is assumed to have an indefinite life comes under ……(going concern)
4- Contingent liabilities are usually shown as a foot note in the balance sheet as per …………….
Accounting principle ( full disclosure)
5- During the life time of a business accounting produce financial statements in accordance with
which accounting concept. ( accounting period)
6- Revenue is generally recognized at the point of sale denote the concept of …..( Revenue
realization)
7- The ……………………. Principle requires that same accounting methods should be used from one
accounting period to the next. (consistency)
8- Companies must prepare financial statements at least yearly due to the …………. Assumption(
accounting period)
9- Accounting standards are issued by ……………. In India( institute of chartered accounts of India)
10- Accounting standards in India formulated and governed by …………. (accounting standard board)
11- Accounting principles are generally based on ………………..(practicability)
12- Closing stock is valued at …………….(cost price or market price whichever is lower)
13- Assets are shown at cost less depreciation due to ……………………concept(going concern)
14- The ……….. concept makes a distinction between a business and its proprietor. (business entity)
15- Revenue is generally recognized being earned at when…………….. (sale is effected)
16- According to ……………… principle frequent changes in accounting principle adversely affect the
reliability of financial information. (consistency)
17- A firm purchased pen and paper weight and included these items under head stationery.
Identify the relevant accounting principle(materiality)
18- A company supplies stationaries to another company on credit assuming that they can realize
the amount in the future. Name the relevant concept. ( going concern)
19- While preparing the final accounts outstanding salary is added to the salary account. The
accounting principle relevant to this context is ….(matching)
20- Transaction relating to the qualitative aspect of business are not recorded because of the ……
principle ( money measurement)
21- Which principles of accounting helps to equate the assets with liabilities( duality principle)
22- Accounting equation satisfies the……………………… concept of accounting( duality concept)
23- Which principle states that information about two different enterprises have been prepared and
presented in a similar manner.( consistency)
24- Which concept states that a business concern will not be sold or liquidated in near future. (going concern)
25- The …………………..concept requires that the accounting transaction should be free from the bias
of accountant and others ( objectivity)
26- The ……………. Concept states that if straight line method of depreciation is used in one year ,
then it should also be used in next year ( consistency)
27- According to which accounting principle personal expenses of proprietor are recorded in
drawings account. ( Business entity)
28- Under which accounting principle quality of manpower is not recorded in the books of accounts( money
measurement)
29- Which accounting principle requires that life of a business be broken into smaller parts (accounting period)
30- Under which accounting concept fixed assets are recorded at cost without considering the
market price (whether low or high).( cost principle)
31- Closing stock is valued at lower of cost or market price. Which concept of accounting is applied here
( prudence)

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