Basic Accounting Terms — Account STD 11 Commerce — Question

On 25th March, 2017, a fire broke out in the premises of Kamal Ltd. And destroyed a part of its plant and machinery. On account of this, a sharp decline in production for the next six months is expected. The company did not disclose this fact in its annual report for the year ended 31st March, 2017. What is your opinion about this omission?

What type of information is required by long-term lenders?

When an asset is purchased in cash or an expense is incurred in cash, cash is credited. Why?

What are Artificial Personal Accounts? Give one example.

Under which principle the calibre or quality of the management is not disclosed in the balance sheet?

A transaction is recorded correctly in Journal Proper have not posted in the ledger at all, will it affect the Trial Balance? Give reason.

Which accounting principle states that all anticipated losses should be recorded but all anticipated profits should be ignored?

What is the objective of preparing an Account?

What are major types of Reserves?

What is the rule for Expenses Account?