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प्रश्न
“The principle of full disclosure and principle of materiality are contradictory.” Comment.
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उत्तर
The principle of full disclosure requires that accounts must disclose all material facts to stakeholders. The principle of materiality requires that items having insignificant effect need not be disclosed. The two principles are not contradictory because both suggest recording and disclosure of only material facts which can influence decisions of investors.
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संबंधित प्रश्न
Justify the following:
Every transaction is recorded in at least three accounts.
Explain the need for GAAP for accounting.
Accounting principles are necessary due to which of the following reasons?
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
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.
“Accounts should disclose all material information” (with reference to the concept of accounting). Justify either for or against by giving two reasons.
“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.
Explain the revenue principle.
Name any four concepts of GAAP.
