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 1: Introduction to Business Environment
Very Short Questions Answers 1. Define business environment. Business environment is combination of all the factors that influence a business activity. It consists of the internal and external forces prevalent in the environment, which have a bearing on the development, performance and outcomes of a business organization. 2. Define task environment. Task environment refers to […]
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 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 […]
Chapter 1 : Basic Understanding of Financial Accounting
Very Short Question Answer What is cash basis of accounting? When transactions are recorded on the basis of actual flow of cash in and out of the business, it is known as cash basis of accounting. Under this method, incomes are recorded when they are received and expenses are recorded when they are paid. Define […]