Statement I In the traditional accounting, assets are shown at cost, year after year.
Statement II The cost in inflation accounting represent the cost that prevails at the time of reporting.
Which of the following is/are correct?
A. Both statements are correct
B. Both statements are incorrect
C. Statement I is correct, but statement II is incorrect
D. Statement II is correct, but statement I is incorrect
Answer: Option A
This Question Belongs to Commerce >> Accounting
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
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