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Explanation

The cost concept basically recognises historical cost or the acquisition cost of the asset.

The value of an asset is to be determined on the basis of historical cost.

Explanation

The wrong rule is "Real account-credit what comes in."

The correct rule for real accounts is to credit what goes out.

Real accounts record assets and liabilities, and credits decrease asset accounts and increase liability accounts.

Explanation

MOST stands for Mission, Objectives, Strategies, and Tactics.

It is a framework used for strategic planning, helping organizations define their mission, set objectives, develop strategies, and outline tactics to achieve their goals.

Explanation

IAASB stands for International Auditing and Assurance Standards Board.

It sets international standards for auditing, assurance, and other related services to enhance the quality and consistency of financial reporting globally.

Explanation

The accounts that record expenses, gains, and losses are nominal accounts.

These accounts track income and expenditure for a specific period, including revenue, expenses, gains, and losses.

Explanation

To determine C's share of the net income:

Calculate C's share:

• C's Share = Net Income × C's Ratio
• C's Share = $60,000 × 20%
• C's Share = $60,000 × 0.20 = $12,000

So, C's share of the net income is $12,000.

Explanation

In accounting, the basic equation is:

Assets = Liabilities + Capital

Rearranging this:

Capital = Assets - Liabilities

This represents the owner's equity in the business.

Correct Answer: Capital is equal to assets minus liabilities 

Explanation

Fundamental accounting assumptions are:

1. Business Entity: The business is separate from its owners.
2. Going Concern: The business will continue operating indefinitely.
3. Dual Aspect: Every transaction affects the accounting equation (Assets = Liabilities + Equity).
4. Materiality: Significant information must be disclosed to influence stakeholders' decisions.

Explanation

The liabilities that are payable in more than a year and are not to be liquidated from current assets are fixed liabilities.

These are long-term obligations like bonds or long-term loans that extend beyond the current operating eecycle.

Explanation

Real accounts record dealings in commodities.

They relate to assets, such as cash, property, and equipment, which are tangible and reflect the value of resources owned by the business.