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प्रश्न
According to the ______ Principle of accounting, transactions are recorded on the assumption that the business will exist for an indefinite period of time.
पर्याय
Business Entity Concept
Dual Aspect
Going Concern Concept
Money Measurement Concept
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उत्तर
According to the Going Concern Concept Principle of accounting, transactions are recorded on the assumption that the business will exist for an indefinite period of time.
Explanation:
According to the going concern notion, it is believed that the company will continue to operate indefinitely, and this belief is also reflected in the way that transactions are documented.
संबंधित प्रश्न
Explain the Business Entity Concept.
The retirement of manager of the company cannot be recorded in the book of accounts, because it is not possible to estimate the financial effect of retirement. Which accounting principle would be applicable for the above statement?
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
This principle suggests that every debit has a corresponding and equal credit.
“Firms live forever.” Explain with reference to the concept of accounting.
"Every transaction affects at least three accounts." Comment.
Explain the money measurement principle of accounting.
Why are Generally Accepted Accounting Principles (GAAP) needed?
Explain the revenue principle.
