Any change in the accounting policy relating to inventories which has a material effect in the current or later periods should be disclosed. This is in accordance with the accounting principle of:

Related MCQs

• In the course of preparing a company’s cash flow statement, the following figures are to be included in the calculation of net cash from operating activities: Depreciation charges Rs.9,80,000 Profit on sale of non-current assets Rs.40,000 Increase in inventories Rs.1,30,000 Decrease in receivables Rs.1,00,000 Increase in payables Rs.80,000 What will be the net effect of these items in the cash flow statement?
• The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is
• Due to retrospective effect on revision of salary of employees, the arrears of salary relating to past years, payable in current year is
• Accounting procedures and accounting practices should remain same from year to year under which of the following accounting principles:
• AB Ltd. has signed at 31st December, 2017 the Balance Sheet date, a contract where the Total Revenue is estimated at ` 15 Crores and Total Cost is estimated at ` 20 Crores. No work began on the contract. Is the Contractor required to give any accounting effect for the year ended 31st December, 2017?
• Which of the following errors is not disclosed by a Trial Balance?
• The error disclosed by Trial Balance is
• Which of the following is true statement for computerised accounting system? a. the computer accounting system is based on the concept of database. b. Computer accounting system does not away with the concept of creating and maintaining journals, ledger etc.
• Which of the following items should not be capitalized relating to fixed assets?
• Any gain on the sale of non-current assets should be _________ from the net profit and the loss must be _________to the net profit in determining fund from operation