Which of the following statements is INCORRECT?
Those assets which cannot be seen or touched and have no volume but have value are called tangible assets.
The correct answer is option 2. This statement is INCORRECT. Tangible assets are physical items that can be seen or touched, such as machinery, buildings, and inventory. The statement is incorrect because it describes intangible assets, which are assets that cannot be seen or touched but have value, such as patents, trademarks, or goodwill.
Important Questions from Basics of Accounting
Match the following accounting concepts with the meaning/implications.
Accounting
Concept
Meaning
Implication
(i)
Money
measurement
concept(a)
Capital of the proprietor is considered as a liability
(ii)
Business
entity concept(b)
Fixed assets are
valued on a cost basis(iii)
Going concern concept
(c)
Changes in purchasing power are ignored
Which of the following statements is correct?
Which of the following statements is correct?
______ is defined as a statement or a list of all ledger account balances taken from various ledger books on a particular date to check the arithmetical accuracy.
Accounting is rightly referred to as the '________' of business.
