[amp_mcq option1=”a-4, b-3, c-2, d-1″ option2=”a-2, b-3, c-4, d-1″ option3=”a-2, b-1, c-4, d-3″ option4=”a-2, b-4, c-1, d-3″ correct=”option3″]<\/p>\n
The correct answer is C.<\/p>\n
a. Revenue means the income of a regular<\/strong> nature.<\/p>\n Revenue is income that a company receives from its normal business activities. It is usually recorded in the income statement as a single line item, but it can be broken down into different categories, such as sales revenue, service revenue, and interest revenue.<\/p>\n b. Premium paid on the life insurance policy of the proprietor will be debited to Drawings<\/strong> account.<\/p>\n Drawings are the amounts of money that a business owner takes out of the business for personal use. They are recorded in the owner’s equity section of the balance sheet as a decrease in the owner’s capital account.<\/p>\n c. Going concern concept is relevant for businesses<\/strong>.<\/p>\n The going concern concept is the assumption that a business will continue to operate for the foreseeable future. This assumption is important because it allows businesses to use historical costs to value their assets and liabilities.<\/p>\n d. Recognition of cost in the same period as associated revenues is called matching principle<\/strong>.<\/p>\n The matching principle is an accounting principle that requires businesses to recognize expenses in the same period as the revenues that they generate. This principle helps to ensure that businesses report accurate financial information.<\/p>\n Here is a table that summarizes the correct answers:<\/p>\n List I | List II [amp_mcq option1=”a-4, b-3, c-2, d-1″ option2=”a-2, b-3, c-4, d-1″ option3=”a-2, b-1, c-4, d-3″ option4=”a-2, b-4, c-1, d-3″ correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-54595","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n
\n——- | ——–
\na. Revenue | regular
\nb. Premium paid on the life insurance policy of the proprietor will be debited to | Drawings
\nc. Going concern concept is relevant for | businesses
\nd. Recognition of cost in the same period as associated revenues is called | matching principle<\/p>\n","protected":false},"excerpt":{"rendered":"