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प्रश्न
Justify the following:
Every transaction is recorded in at least three accounts.
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उत्तर
Double-entry accounting involves debiting and crediting at least two accounts for each transaction. This approach guarantees the accounting equation (Assets = Liabilities + Equity) is balanced. In some circumstances, a single transaction may affect many accounts. When a business acquires merchandise on credit, it impacts the merchandise account, Accounts Payable (creditor), and Cash or Bank account (if payment is paid in part or full). To preserve the accounting equation and ensure accuracy, financial transactions are normally documented in at least three accounts.
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संबंधित प्रश्न
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
With reference to the concept of accounting only those transactions are recorded in accounts which can be expressed in terms of money. Justify either for or against.
The capital provided by the owner is a liability of the firm. Answer with reference to the concept of Accounting.
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.
"Fixed assets should be valued at the market price." Comment.
"Every transaction affects at least three accounts." Comment.
Explain the money measurement principle of accounting.
Explain Accounting Period Concept.
Write short note on the going concern concept.
