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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
Explain the Business Entity Concept.
Define the term GAAP.
GAAP stands for ______.
Accounting principles are necessary due to which of the following reasons?
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.
Discuss in brief the basic principles of accounting.
"The capital provided by the owner is treated as a liability of the firm." Explain the concept on which the above depends.
Explain the Dual Aspect Principle.
Write short note on the going concern concept.
