Question

AS – 7 is mandatory in nature and it is applicable to all the ___________ contracts entered on or after 01/04/2003.
a. Temporary
b. Permanent
c. Construction
d. Batch

Answer 1

Answer:

AS – 7 is mandatory in nature and it is applicable to all the __Temporary_ contracts entered on or after 01/04/2003.

Answer 2

It is applicable to all construction contracts.

• Accounting standards set rules for treatment of various transactions.

• The accounting handling of income and expenditures are laid out in this standard.
• It also taken into account the total cost and revenue of the contract.
• The goal of this accounting standard is to establish how income and expenditures connected with building contracts should be recorded.
• It is mandatory and applicable to all such contracts after 1 April 2003.