Only the significant events which affect the business must be recorded as per the principle of

Related MCQs

• Which of the following statements is/are true? (i) An error in casting the subsidiary books is an error of commission (ii) An error in wrong casting of the sales day book will not affect the personal accounts of debtors (iii) Mistake in transferring the balance of an account to the Trial Balance will not affect the agreement of the Trial Balance (iv) The mistake of treating a liability as an income or vice versa will not affect the agreement of a Trial Balance
• A merchant sends out his goods casually to his dealers on approval basis. All such transactions are, however, recorded as actual sales and are passed through the sales book. On 31st March, it was found that 100 articles at a sale price of ` 200 each sent on approval basis were recorded as actual sales at that price. The sale price was made at cost plus 25%. The amount of stock on approval will be amounting
• If any transaction is not recorded in the primary books the same is recorded in _______
• Which of the following transactions of a business is/ are recorded in Journal Proper? (i) Purchase of goods on credit (ii) Sale of Office Furniture for cash (iii) Discounting of Bill of Exchange with a bank (iv) Endorsement of a Bill of Exchange in settlement of debt of the business
• What is the order in which the accounting transactions and events are recorded in the books
• Purchases made on credit not recorded at all would affect
• Transaction& events not capable of being expressed in terms of money are not to be recorded in accounting due to
• ——— Principle specifies that cost or expenses should be recorded at the same time as the revenue to which they correspond
• According to this convention, important items must be recorded instead of being left out or merged with other items.
• Withdrawal of goods from stock by the owner of the business for personal use should be recorded by