STATE WHICH ACCOUNTING CONVENTION/ PRINCIPLE FOLLOWED / VIOLATED IN THE FOLLOWING CASES
A) A COMPANY INCURS A HEAVY AMOUNT OF RS 15,00,000 A PUBLICITY THROUGH T.V AND RADIO .IT WISHES TO SPREAD EXPENDITURE OVER A PERIOD OF 5 YEARS.
B) ASSUMING BENEFITS ARE EXPECTED IN THAT YEAR ONLY.
C) BENEFITS ARE EXPECTED OVER A PERIOD OF 5 YEARS.
D) ADVANCE RECEIVED FROM CUSTOMER IS NOT TAKEN AS INCOME OR SALES .
E) PURCHASE OF PEN IS TREATED AS EXPENSE.
F) SALE IS RECOGNIZEDON THE BASIS OF CASH MEMO OR INVOICE .


PLZ NEED THIS ANSWER !!!

Hey

The solution to your query is provided below:

A) A COMPANY INCURS A HEAVY AMOUNT OF RS 15,00,000 on a PUBLICITY THROUGH T.V AND RADIO. IT WISHES TO SPREAD EXPENDITURE OVER A PERIOD OF 5 YEARS - Matching Principle is followed
B) ASSUMING BENEFITS ARE EXPECTED IN THAT YEAR ONLY- Matching principle is violated
C) BENEFITS ARE EXPECTED OVER A PERIOD OF 5 YEARS- Matching Principle is followed
D) ADVANCE RECEIVED FROM CUSTOMER IS NOT TAKEN AS INCOME OR SALES- Revenue Recognition is followed
E) PURCHASE OF PEN IS TREATED AS EXPENSE - Materiality principle is followed
F) SALE IS RECOGNISED ON THE BASIS OF CASH MEMO OR INVOICE- Objectivity is followed

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