Which concept states that a business firm will continue to carry on its activities for an indefinite period of time? Explain any two significance of that concept. Distinguish between Accounting and Book-keeping. 

Which are the two aspects of the following transactions?
(i) Paid to Mr. Ashok.
(ii) Commission received

Give any two examples of assets.

Explain how accounting information is useful to Creditors and Employees.

Classify the following items into assets, liabilities, capital, revenue and expense.
(i) Interest received
(ii) Salaries Paid
(iii) Land & Building
(iv) Creditors

Explain the Convention of Materiality

What is a business transaction? Give two examples of Business Transactions.

A business has unsold stock at the end of the year. The Cost Price is Rs.1,20,000 and its Market Price is Rs.1,25,000. At which price unsold stock be recorded? On the basis of which accounting convention this accounting treatment is done. Explain that concept.

Write short notes on Drawings and Wasting Assets.

Prepare Accounting Equation on the basis of the following transactions:
(i) Prakash started business with cash Rs.5,00,000
(ii) Purchased goods from Anil for cash Rs.32,000
(iii) Sold goods for Rs.1,00,000
(iv) Bought furniture Rs.12,000
(v) Paid rent Rs.1,250
(vi) Received interest Rs.520

Visit any two business firms and make a list of their transactions (any ten) and classify them as business and non-business transactions.

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