Mention the name of the relevent accounting assumption or principle applied herein
1. Valuation of closing stock at cost price or market price, whichever is less. 2. Valuing crops at market value.
3. Following the straight line method of depreciation year after year.
4. Revenue is generally recognised at the point of sale.
5. Appending notes to the financial statements.
6. Classification of assets into fixed assets and current assets,
7. Accounting of a small pocket calculator as an expense or not as an asset.
8. The quality of management team is not disclosed inthe balance sheet.
9. The business will continue for an undefinite period.
10. The life of the business is broken onto smaller parts and financial statements are prepared for each part/period.
11. Income is recognised when it is earned and expenses are recognised when incurred.
12. The business unit is separate from its owner or owners.
13. Assets are recorded in the books, at the cost incurred for puchase of asset.
14. Advance received from a customer is not considered as income from sale.
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1. The convention of conservatism
2. Business entity concept
3. Convention of consistency
4. Accrual basis of accounting
5. Convention of full disclosure.
6.
7.
8.Monetary value
9. Going concern concept.
10. Periodicity concept
11. Accrual basis of accounting.
12. Business entity concept.
13. Convention of conservatism
14. Revenue recognition concept
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