Q1 · medium · AI-verified
Under which accounting concept is it assumed that a business will continue its operations indefinitely in the foreseeable future?
- Conservatism Concept
- Consistency Concept
- Dual Aspect Concept
- Going Concern Concept
Q2 · medium · AI-verified
Under which accounting concept are revenues recognised in the period they are earned, regardless of when cash is received?
- Cost Concept
- Conservatism Concept
- Cash Basis Concept
- Accrual Concept
Q3 · medium · AI-verified
A firm purchases machinery worth ₹5,00,000 with a useful life of 10 years and no salvage value. Under the Straight-Line Method (SLM), what is the annual depreciation amount?
- ₹40,000
- ₹55,000
- ₹45,000
- ₹50,000
Q4 · medium · AI-verified
Depreciation is charged on fixed assets to comply with which accounting principle?
- Cost Principle
- Going Concern Principle
- Full Disclosure Principle
- Matching Principle
Q5 · medium · AI-verified
Which of the following correctly represents the Accounting Equation?
- Liabilities = Assets + Owner's Equity
- Owner's Equity = Assets + Liabilities
- Assets = Liabilities − Owner's Equity
- Assets = Liabilities + Owner's Equity