Advertisements
Advertisements
प्रश्न
Explain any two basic concepts of accounting.
स्पष्ट करा
Advertisements
उत्तर
- The Revenue Principle: This principle suggests that revenue should be treated as realised whenever the ownership of goods changes. It is immaterial whether the revenue is received in cash or not.
- The Expense Principle: According to this principle, every cost which is incurred to earn revenue is known as expense. Costs incurred on manufacturing, selling and distributing goods and services are expenses. Expenses should be recognised whenever incurred, irrespective of whether cash is paid or not.
shaalaa.com
Generally Accepted Accounting Principles (GAAP)
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
APPEARS IN
संबंधित प्रश्न
This principle suggests that every debit has a corresponding and equal credit.
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.
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.
"Fixed assets should be valued at the market price." Comment.
Explain the money measurement principle of accounting.
Explain Accounting Period Concept.
Explain the revenue principle.
Explain the expense principle.
Explain the realisation principle.
Name any four concepts of GAAP.
