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प्रश्न
According to this concept, a business firm is treated as a unit separate and distinct from its owners.
पर्याय
Money measurement concept
Accounting period concept
Business entity concept
Realisation concept
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उत्तर
Business entity concept
Explanation:
According to the business entity concept, a business is treated as a separate and distinct unit from its owners. This means that the business's financial transactions are recorded separately from the personal transactions of the owners. This concept ensures clarity and accuracy in financial reporting by keeping the business's financial activities distinct from those of its owners.
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संबंधित प्रश्न
What does GAAP stand for in Accounting?
This concept assumes that the business will continue to exist for a long time in the future.
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
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.
Explain 'Matching Concept' of GAAP.
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.
Why are Generally Accepted Accounting Principles (GAAP) needed?
Explain the expense principle.
Explain the principle of consistency.
