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प्रश्न
Explain the expense principle.
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उत्तर
The expense principle states that expenses are recognised when the assets or services are used to produce revenue and not when the cash is paid. In other words, expenses should be recognised whenever incurred, irrespective of whether cash is paid or not.
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संबंधित प्रश्न
Explain the Business Entity Concept.
Explain the need for GAAP for accounting.
Accounting principles are necessary due to which of the following reasons?
This principle suggests that every debit has a corresponding and equal credit.
Accounts should disclose all material information (with reference to the concept of accounting). Justify either for or against by giving two reasons.
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.
Explain matching principle of accounting.
Explain the complete disclosure principle.
Explain the revenue principle.
Name any four concepts of GAAP.
