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प्रश्न
"Every transaction affects at least three accounts." Comment.
थोडक्यात उत्तर
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उत्तर
- Every transaction affects two accounts and not at least three accounts. Every transaction has two aspects - one is debit and another is credit.
- According to this principle, every business transaction has a double (dual) effect on the business. This double effect can be recognised only by recording both the aspects of every transaction.
- There are two sides of every transaction. If one account is debited, any other account must be credited and vice-versa. The system of recording transactions on the basis of this principle is known as 'Double Entry System'. It is due to this principle that the two sides of the Balance Sheet are always equal.
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Generally Accepted Accounting Principles (GAAP)
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
संबंधित प्रश्न
What does GAAP stand for in Accounting?
Explain the Business Entity Concept.
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.
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.
According to Business Entity Concept:
"Firms live forever." Explain with reference to the concept of accounting.
Discuss in brief the basic principles of accounting.
Explain any two basic concepts of accounting.
Write short note on the going concern concept.
Explain the realisation principle.
