According to this convention, important items must be recorded instead of being left out or merged with other items.

Related MCQs

• 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 _______
• A reserve is created but its identity is merged with some other account or group of accounts so that the existence of the reserve is not known:
• A___________ transaction is one where in items are exchanged for other items
• Transaction& events not capable of being expressed in terms of money are not to be recorded in accounting due to
• Only the significant events which affect the business must be recorded as per the principle of
• According to the money measurement concept, the following will be recorded in the books of account of the business:
• The following are details of closing stock items in Aarvi Limited: Items Historical Cost (` in Lakh) Net Realizable Value (` in Lakh) (a) 30 27 (b) 15 18 (c) 35 35 (d) 40 45 The value of Closing Stock will be
• Which of the following practices is not in consonance with the convention of conservatism?
• The convention that states that the accounting practice should be followed consistently over the years