Very Short Question Answer Enumerate any four characteristics of Income Tax Act 2058. The four characteristics of Income Tax Act, 2058 are given below. Confinement of all tax related matters in a single act. Detailed definitions of key terminologies. Broad tax base Allowed deduction for all related expenses Explain the relationship of Income Tax Act […]
Chapter 1: Conceptual Foundation
Very Short Question Answer Define tax. State any two canon of taxation.(2073) Tax is defined as a compulsory contribution from a person to the government to defray the expenses incurred in the common interest of all, without reference to special benefit conferred. The two canons of taxation are as explained below: Canon of Equality: This […]
Chapter 8: Accounting for Current Liabilities and Contingencies
Very Short Question Answer Write down the meaning of contingent liabilities. Liabilities that may come into existence depending upon the outcome of some other event are known as contingent liabilities. Outstanding lawsuits and product warranties are common examples of contingent liabilities. A contingent liability should be accrued and presented on the balance sheet if it […]
Chapter 7: Accounting for Receivables
Very Short Question Answer Define receivables. Receivable can be defined as a monetary claim from debtors for sale of goods on credit, providing services on credit and providing loans and advances. It includes accounts receivable/debtors, notes receivable, bills receivable and other receivables such as interest receivable, rent receivable, etc. Write any two differences between accounts […]
Chapter 6: Accounting for Cash and Internal Control
Accounting for Cash and Internal Control Very Short Question Answer Write about Not Sufficient Fund (NSF) cheque. A cheque that a bank refuses to honor because there is not enough money in the payer’s checking account to cover the amount of the check is written as not sufficient fund (NSF) cheque. A NSF cheque is […]
Chapter 5: Accounting for Inventories and Cost of Good Sold
Very Short Question Answer| Accounting for Inventories Also Read: Tax Accounting And Timing accounting for inventories accounting for inventories accounting for inventories What is inventory? An inventory is a merchandise of goods or other items owned by a firm and held for sale or for processing before being sold, as part of a firm’s ordinary operations. […]
Chapter 4: Accrual Basis of Accounting
Accrual Basis of Accounting Very Short Question Answer The financial position of Kalika & Bros. on Baishakh 01, 2076 is as below: Cash in hand: Rs.20,000 Furniture: Rs.50,000 Accounts receivable: Rs.74,000 Outstanding expenses: Rs.4,000 Cash at bank: Rs.36,000 Accounts payable: Rs.34,000 Stock of goods: Rs.26,000 Prepaid expenses: Rs.8,000 Required: Opening entry SOLUTION The following […]
Chapter 3: Accounting Process
Very Short Question Answer (Accounting Process) Define source of document with suitable example. The source documents are the piece of papers, which are required to keep record of any transaction with full evidence. All accounting records have to be based on facts and carefully supported by documentary proof. These documents provide the authenticity of happening […]
Chapter 2: Conceptual Framework of Accounting(Top Best Solution)
Very Short Question Answer (Conceptual Framework of Accounting ) What is materiality convention of accounting? Materiality concept of accounting is an accounting convention that refers the relative” importance or significance of an item to a decision maker. The materiality concept of accounting guides about recognition of a transaction. It means that transactions which is of […]