Page 166 - DCOM409_CONTEMPORARY_ACCOUNTING

Unit 13: Critical Evaluation of Principles and Practices

5. Illustrate the concept of dual aspect. Notes
6. When an event affects the revenues and expenses, the affect on each should be recognised
in the same accounting period. Why?

7. Anticipate no profits but provide for all possible losses. Discuss the statement with suitable
examples.
8. According to cost concept assets should be shown at their cost and not at their current
market value. Why?

Answers: Self Assessment

1. Accounting principles
2. standards

3. monetary
4. separately
5. market value
6. Liabilities
7. indefinitely

8. equal-to-cash
9. sale
10. objectivity

13.6 Further Readings

Books Chandra, P., Financial Management - Theory and Practice, New Delhi, Tata McGraw
Hill Publishing Company Ltd., 2002, p. 3.
Sudhindra Bhat, Financial Management, New Delhi, Excel Books, 2008.
Van Horne, J.C. and Wachowicz, Jr, J.M., Fundamentals of Financial Management,
New Delhi, Prentice Hall of India Pvt. Ltd., 1996, p. 2.

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