Distinguish between cash basis and accrual basis of accounting. Why do you consider accrual basis more rational?

Write notes on the following concepts: i) Going Concern Concept ii) Conservatism iii) Consistency iv) Full Disclosure v) Materiality Concept?

Why is distinction between capital and revenue important? Give examples to show how wrong classification can affect the ascertainment of profit.

What is the significance of an Accounting Period?

Name three items of costs.

What do you understand by matching costs against revenue? Explain the main implications of the Matching Concept.

What is the assumption under Going Concern Concept?

Name three items of revenue?

What is deferred revenue expenditure? Give three examples.

Ascertain the profit to the business for the month of June, 1988 for which the 'following information is available.

Sales  80,000

Cost of goods produced   70,000

Cost of goods sold   60,000

Salaries for June   10,000

Rent for June paid in July 1000

Sundry Expenses   600