question_answer

Consider the following statements

I. The entity concept of accounting is not applicable to sole trading concerns and partnership concerns.

II. Assets are to be shown in the balance sheet at their replacement cost on liquidation.

III. Money measurement concept takes into account changes in the value of monetary unit.

IV. When a creditor is paid, this result in decrease of one asset and a corresponding increase in other asset.

Which of the statements given above are Correct?

A)  I and II                                    

B)  II and III

C)                     III and IV                                 

D)  None of these