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प्रश्न
Explain the complete disclosure principle.
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उत्तर
- The complete disclosure principle requires that all significant information relating to the economic affairs of an enterprise must be fully and completely disclosed in the financial statements and their accompanying footnotes. Financial statements are meant for the use of owners, investors, suppliers, lenders, bankers, employees, government and others.
- While preparing financial statements, it should be ensured that significant facts or information are not omitted. It has special significance in case of joint stock companies in which ownership and management are separate. Items which do not find a place in accounting statements are shown in the balance sheet by way of footnotes.
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संबंधित प्रश्न
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
This concept assumes that the business will continue to exist for a long time in the future.
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.
"The capital provided by the owner is treated as a liability of the firm." Explain the concept on which the above depends.
"Every transaction affects at least three accounts." Comment.
Explain the money measurement principle of accounting.
Explain any two basic concepts of accounting.
Explain The Dual Aspect Principle.
Explain the realisation principle.
"The principle of full disclosure and principle of materiality are contradictory." Comment.
