Re: FIN621 GDB 1 Solution and Discussion
Total Marks 10
Starting Date Tuesday, June 02, 2020
Closing Date Monday, June 08, 2020
Question Title Accounting Principles
Learning outcome: After attempting this activity, students will be able to understand the concept of “Accounting Principles”.
Identify the accounting principle(s) applicable to each of the following situations:
ABC Company owns a photocopy shop, a food court and provides tax consultancy service. The financial statements of each business are prepared separately.
Any equipment purchased for less than Rs. 3,000 is considered as miscellaneous expense.
For valuation of inventory the company uses lower of cost or market value.
Land purchased 15 years ago amounting to Rs. 10 million is now worth Rs. 50 million. However, in the books of account it is still reported as Rs. 10 million.
Post your GDB comments (answer) against GDB # 01 rather than against lessons’ MDB.
Your discussion must be based on logical reasoning and to the point. Avoid irrelevant discussion and unnecessary information
Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.
Books, websites and other reading material may be consulted before posting your comments; but copying or reproducing the text from books, websites and other reading materials is strictly prohibited. Such comments will be marked as Zero (0) even if you provide references.
Obnoxious or ignoble answer should be strictly avoided.
Questions/queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB.
For Detailed Instructions, please read the GDB # 01 announcement.