Financial Statements

Accounting Policies – CA Foundation Accounts Question 1.What do you mean by Accounting policies? What are the basis of their selection? What are the different areas in which different accounting policies are possible?Answer:Meaning of Accounting Policy:→ The accounting policies refers to the specific accounting principles and the methods of applying those principles → Adopted by […]

Contingent Assets and Contingent Liabilities – CA Foundation Accounts Question 1.Contingent liability.Answer:Contingent liability:(a) A contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise. Possible […]

Capital and Revenue Expenditure – CA Foundation Accounts Question 1.Capital ExpenditureAnswer:Capital Expenditure: Any amount spent by actual payment or for which a liability is incurred is known as an expenditure. Capital Expenditure is that expenditure which results in the acquisition of an asset (tangible or intangible) which can be later sold and converted into cash […]