According to which concept business is treated as a unit apart from owner A. Dual concept B. Divider concept C. Entity concept D. Landlord concept 53. The reduction in the value of the fixed assets which can arise due to time factor is A. Discount B. Depreciation C. Reduction D. None of the above 54. Which of the following should not be called sales? A. Goods sold on credit B. Office fixtures sold C. Sale of the item previously included in purchase D. Good sold for cash 55. Which of the following is not regarded as the fundamental accounting concept? A. The going concern concept B. The separate entity concept C. The prudence (conservatism) concept D. Correction concept

52. Option C is right.

Entity concept : According to entity concept where it says that entity is treated as a unit aprt from owner that means financial transactions of an entity is recorded in it's own books of accounts and owner's transactions cannot be combined here. This is done because financial position, taxation and audit of the firm as the case may be done separately.

A. Dual Concept : It includes double entry system where it says that when something is debited other thing has to be credited. This is the reason this option is not right.

B & D :Divider and landlord concepts : There are no such concepts in Accounting.

53. Option B is right

Depreciation : It says that the value of an asset decreases with time factor due to wear and tear of the asset. Depreciation is indicated by rates.

A. Discount : it's a reduction in the price of a product. It is received or paid.

C & D options are not right.

54. option B is right.

B. Office fixtures sold : This is an asset which is not sold in the ordinary course of business. The proceeds form sale of assets can be included in the profit and loss statment not in the trading account where those items are included which is directly attributable to the business.

Other options : the other options are sold in the ordinary course of business.Goods are those which are purchased and sold for cash or on credit in the business and which is included in the trading account.

55. Option D is right

D. correction concept : There is no such concept in accounting.

other options.

A. Going concern : It says Financial statements are prepared with a view that business will continue for a long period.

B.Entity concept : Explained above.

C. Prudence Concept : According to this concept, Revenue is recorded only when it is realised and expenses are recorded with possibility that they will be incurred in the future.