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प्रश्न
Explain the revenue principle.
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उत्तर
The revenue principle states that revenue should be recognised when the goods are delivered by sellers and accepted by buyer, i.e., ownership of, goods changes. Hence the revenue is assumed to be realised when a legal right to receive it arises. Credit sales are treated as revenue on the day sales are made and not when money is received from the buyer.
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संबंधित प्रश्न
Accounting principles are necessary due to which of the following reasons?
According to this concept, a business firm is treated as a unit separate and distinct from its owners.
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
This principle suggests that every debit has a corresponding and equal credit.
According to this principle, accounts should be prepared in such a way that all the material information required by users of financial statements is clearly disclosed.
"Firms live forever." Explain with reference to the concept of accounting.
Every transaction has two effects. (with reference to the concept of Accounting). Give a reason either for or against.
Explain matching principle of accounting.
Explain the complete disclosure principle.
Explain the principle of consistency.
