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प्रश्न
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.
पर्याय
Matching principle
Principle of full disclosure
Dual aspect principle
Realisation concept
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उत्तर
Realisation concept
Explanation:
The realisation concept states that revenue is recognized and deemed to be realized when the goods have been transferred, or the services have been rendered to a customer. There is a reasonable certainty of payment. This principle ensures that revenue is recorded in the accounting period in which it is earned, not necessarily when payment is received.
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संबंधित प्रश्न
Explain the need for GAAP for accounting.
Define the term GAAP.
According to this concept, a business firm is treated as a unit separate and distinct from its owners.
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.
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.
"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.
Explain the revenue principle.
