Advertisements
Advertisements
प्रश्न
Explain any two basic concepts of accounting.
Advertisements
उत्तर
- The Revenue Principle: This principle suggests that revenue should be treated as realised whenever the ownership of goods changes. It is immaterial whether the revenue is received in cash or not.
- The Expense Principle: According to this principle, every cost which is incurred to earn revenue is known as expense. Costs incurred on manufacturing, selling and distributing goods and services are expenses. Expenses should be recognised whenever incurred, irrespective of whether cash is paid or not.
APPEARS IN
संबंधित प्रश्न
The retirement of manager of the company cannot be recorded in the book of accounts, because it is not possible to estimate the financial effect of retirement. Which accounting principle would be applicable for the above statement?
Explain the concept of The Dual Aspect Principle.
According to Business Entity Concept:
Explain 'Matching Concept' of GAAP.
"The capital provided by the owner is treated as a liability of the firm." Explain the concept on which the above depends.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
Explain the complete disclosure principle.
Explain the revenue principle.
Explain the expense principle.
Name any four concepts of GAAP.
