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company prepares accounts sometimes on cash basis ,
sometimes on accural basis
A)TRUE B)FALSE C)SOMETIMES TRUE D)SOMETIMES FALSE
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Answer / sudha
as per basic accounting concepts, it is compulsory for the
companies to follow accrual system of accounting, hence it
has to follow accrual system at any point of time
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / pari
As per the accounting guidleines, a company has to follow
one of the two basis year after year. It could be accrual
Or on actual/Cash basis. Whichever method they choose, they
need to follow it year after another.
It though has an option to change his method/procedure.But
then in such a scenario, the company has to provide the
reasoning and the audit team should also agree to the
reasonning. Then only, such a change is acceptable.
The basis for this is simple, if a company every year
changes the procedure/method its stakeholders can get mis-
guided and will not be able to follow the company position.
To have the buying of its stakeholders, company has to be
very careful and correct in its reportings.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / shiva_13v@yahoo.c...
Thaxs u all,
The answer is B
since they given options, we should apt one in the list.
i hope this will be a correct answer because we can find
the difrence b/w accural and accrual.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / mg
It depends on the company, if the company is mom and pop
(small business)company then it can be on a cash basis.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / hashim bim ali
99% of companies prepare their accounts on the basis of
accrual.
| Is This Answer Correct ? | 1 Yes | 2 No |
Answer / hunny khanna
Under, GATT you have to prepare accounts under accrual
basis but under indian scenerio there is no fixed criteria.
| Is This Answer Correct ? | 0 Yes | 3 No |
3. You are required to show the effect of each of the following changes on profit and Break-Even-Volume from the information given below: Sales 50,000 units Rs. 5.00 per unit Variable cost Rs. 3.00 per unit Fixed cost Rs. 70,000 Changes: (i) Price changes by 20%. (ii) Volume decreases to 40,000 units. (iii) Variable cost increases to Rs 3.50 per unit. (iv) Fixed cost decreases by 10%.
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