Consider the following statements about the 'Money Measurement Concept': 1. Only transactions that can be expressed in monetary terms are recorded. 2. Non-monetary events like a strike or labour unrest are also recorded if they affect business. 3. The concept assumes that the purchasing power of money remains stable. Which of the above statements are correct?
Explanation:
Statement 1 is correct, 2 is incorrect because non-monetary events are not recorded. 3 is correct as an inherent assumption of the money measurement concept.
Under the Written Down Value (WDV) method, if the rate of depreciation is 10% and the original cost is ₹10,000, what is the depreciation for the second year?
S1: Audit reporting is the final stage of the audit process. S2: The auditor's report is addressed to the shareholders of the company. Which statement(s) is/are correct?
Explanation:
Audit reporting is indeed the final stage where the auditor expresses their opinion. Under the Companies Act, the auditor's report is addressed to the members (shareholders) of the company. Both statements are correct.
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