Question

(a) State with reasons, whether the following statements are true / false

6*2=12 Marks

I. As per the Accounting Standard – 2, inventories should be valued at lower of

Current replacement cost and market price

II. A bill of exchange drawn on 12th April, 2018, for four months, the date of maturity

will be 12th August, 2018.

III. Bank reconciliation statement form part of the financial statements

IV. An asset shall be classified as inventory, when it is held primarily for use.

V. Financial statements are prepared on the basis of realization cost

VI. There are four fundamental accounting assumptions are followed in the reparation

and presentation of financial statements.

Answer 1

1. true
2. False
3.false
4.True
5.True
6.True