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प्रश्न
According to Business Entity Concept:
विकल्प
Distinction should be made between fixed assets and current assets.
Distinction should be made between business transactions and personal transactions.
Distinction should be made between Capital expenditure and revenue expenditure.
Accounting equation is always true.
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उत्तर
Distinction should be made between business transactions and personal transactions.
Explanation:
The Business Entity Concept states that a business is treated as a separate legal entity from its owners. This means that there should be a clear distinction between the business's financial transactions and the personal financial transactions of its owners. The financial records of the business should only include business transactions, ensuring that the financial statements accurately reflect the business's financial position.
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संबंधित प्रश्न
According to the ______ Principle of accounting, transactions are recorded on the assumption that the business will exist for an indefinite period of time.
According to this principle, cost of a particular period should be charged from the revenue of same period only.
“Accounts should disclose all material information” (with reference to the concept of accounting). Justify either for or against by giving two reasons.
“Every transaction has two effects.” (with reference to the concept of Accounting). Give a reason either for or against.
Explain Matching Concept of GAAP.
"Every transaction affects at least three accounts." Comment.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
Explain the money measurement principle of accounting.
Explain matching principle of accounting.
Explain the expense principle.
