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प्रश्न
According to Business Entity Concept:
पर्याय
Distinction should be made between fixed assets and current assets.
Distinction should be made between business transactions and personal transactions.
Distinction should be made between Capital expenditure and revenue expenditure.
Accounting equation is always true.
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उत्तर
Distinction should be made between business transactions and personal transactions.
Explanation:
The Business Entity Concept states that a business is treated as a separate legal entity from its owners. This means that there should be a clear distinction between the business's financial transactions and the personal financial transactions of its owners. The financial records of the business should only include business transactions, ensuring that the financial statements accurately reflect the business's financial position.
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संबंधित प्रश्न
According to the ______ Principle of accounting, transactions are recorded on the assumption that the business will exist for an indefinite period of time.
Explain the Business Entity Concept.
Justify the following:
Every transaction is recorded in at least three accounts.
Explain the concept of The Dual Aspect Principle.
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
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.
Explain any two basic concepts of accounting.
Explain the revenue principle.
Explain the expense principle.
Explain the principle of consistency.
