Jupiter Ltd. follows the straight-line method of depreciation for the year 2014. It shifts to the written-down value method in 2015 and back to the straight-line method in 2016. What accounting concept is being violated? a)Materiality concept b)Going concern concept c)Matching concept d)Consistency concept
Jupiter Ltd. follows the straight-line method of depreciation for the year 2014. It shifts to the written-down value method in 2015 and back to the straight-line method in 2016. What accounting concept is being violated? a)Materiality concept b)Going concern concept c)Matching concept d)Consistency concept
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter10: Long-lived Tangible And Intangible Assets
Section: Chapter Questions
Problem 28E
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Question
Jupiter Ltd. follows the straight-line method of
a)Materiality concept
b)Going concern concept
c)Matching concept
d)Consistency concept
2)A businessman purchased goods for Rs. 25,00,000 and sold 80% of the goods during the financial year ended 31st March, 2016. The market value of the remaining goods were Rs. 4,00,000. He valued the closing inventory at cost. He violated the concept of ______________.
a)Money measurement
b)Conservatism
c)Cost
d)Periodicity
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