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प्रश्न
“The capital provided by the owner is a liability of the firm.” Answer with reference to the concept of Accounting.
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उत्तर
It depends on the 'business entity concept.' According to this concept, a business and a businessperson are treated as two different identities and hence the capital contributed by the owner of the business is treated as liability from the point of view of the business.
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संबंधित प्रश्न
Define the term GAAP.
According to this concept, a business firm is treated as a unit separate and distinct from its owners.
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
This concept assumes that the business will continue to exist for a long time in the future.
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.
Name the basic principles of accounting.
“Every transaction has two effects.” (with reference to the concept of Accounting). Give a reason either for or against.
Explain the money measurement principle of accounting.
Explain the complete disclosure principle.
Explain the expense principle.
