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प्रश्न
Explain the revenue principle.
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उत्तर
The revenue principle states that revenue should be recognised when the goods are delivered by sellers and accepted by buyer, i.e., ownership of, goods changes. Hence the revenue is assumed to be realised when a legal right to receive it arises. Credit sales are treated as revenue on the day sales are made and not when money is received from the buyer.
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संबंधित प्रश्न
Justify the following:
Every transaction is recorded in at least three accounts.
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.
"Firms live forever." Explain with reference to the concept of accounting.
Accounts should disclose all material information (with reference to the concept of accounting). Justify either for or against by giving two reasons.
The capital provided by the owner is a liability of the firm. Answer with reference to the concept of Accounting.
"Fixed assets should be valued at the market price." Comment.
"Every transaction affects at least three accounts." Comment.
Explain any two basic concepts of accounting.
"The principle of full disclosure and principle of materiality are contradictory." Comment.
