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प्रश्न
According to this principle, revenue is deemed to be realised when the goods have been transferred or the services have been rendered to a customer.
विकल्प
Matching principle
Principle of full disclosure
Dual aspect principle
Realisation concept
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उत्तर
Realisation concept
Explanation:
The realisation concept states that revenue is recognized and deemed to be realized when the goods have been transferred, or the services have been rendered to a customer. There is a reasonable certainty of payment. This principle ensures that revenue is recorded in the accounting period in which it is earned, not necessarily when payment is received.
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संबंधित प्रश्न
Explain the Business Entity Concept.
Explain the need for GAAP for accounting.
Define the term GAAP.
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.
Explain matching principle of accounting.
Explain The Dual Aspect Principle.
Explain the expense principle.
Name any four concepts of GAAP.
