A company sells goods on credit worth Rs. 100000 in November but receives payment in January. According to the Accrual Concept, this sale should be recorded in:

After all installments are received

A business bought a machine expected to last for 10 years. According to the Going Concern Concept, how should the cost of the machine be treated?

Recorded as an asset and depreciated over its useful life

Expensed fully in the year of purchase

Which of the following is an example of the Full Disclosure Concept?

Including a note about contingent liabilities in the financial statements

Omitting minor expenses from the financial statements

Recording all transactions without any notes

When a company provides services on credit, according to the Accrual Concept, it should:

Record revenue when services are performed

Wait until the accounting period ends to record revenue

Record revenue when cash is received

Concepts Of Accounting

BASICS CONCEPTS OF ACCOUNTING & COMMERCE

Initially the recording and communicating of economic events occurred through narratives in early civilisation. As businesses grew in size there became a need to record the procedures. In 1494, Luco Pacioli, an Italian, described the double entry system of debit and credit to be recorded in journals and ledgers. The Italians were the first bankers however accounting can be traced from the Greeks and Romans in the 4th and 5th century BC who were traders. The system has remained the same. The initial stewardship role of securing cash developed into a system of accounting which involves recording, summarizing and analysing data to ensure the efficient operation of the business currently known as financial accounting. Formerly, the data only reflected receipts and payments of cash. Today the practice is to match income earned with expenses incurred. Later on cost management was identified as a tool to help managers in making business decisions. Other services now include taxation etc. In the quest for consistency in record and presentation, the profession has developed and instituted organised rule making authorities including the International Accounting Standards Board (IASB). They create generally accepted accounting principles (GAAP) and concepts. They are established principles, standards, and legislation unique to each jurisdiction. The profession now requires accreditation and certification given the complexity involved in the record and presentation of accounts and statements.

You should prepare questions around: • CIA triad (confidentiality, integrity, availability) • Authentication vs authorization vs accounting • Non-repudiation and hashing • Risk management concepts • Threat actors (APT, insider, hacktivist, script kiddie, state-sponsored) • Zero trust architecture • Physical security controls (guards, bollards, mantraps, Faraday cage) • Security control types (administrative, technical, physical) • Qualitative vs quantitative risk analysis Type of exam questions • Identify the security principle being violated. • Choose the best control to implement for a given scenario.

concepts of fashion and design

Concepts of Media

Concepts of Government

Concepts of countries and borders

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