Advertisements
Advertisements
प्रश्न
“The capital provided by the owner is a liability of the firm.” Answer with reference to the concept of Accounting.
Advertisements
उत्तर
It depends on the 'business entity concept.' According to this concept, a business and a businessperson are treated as two different identities and hence the capital contributed by the owner of the business is treated as liability from the point of view of the business.
APPEARS IN
संबंधित प्रश्न
According to the ______ Principle of accounting, transactions are recorded on the assumption that the business will exist for an indefinite period of time.
Justify the following:
Every transaction is recorded in at least three accounts.
Define the term GAAP.
This concept assumes that the business will continue to exist for a long time in the future.
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
“Accounts should disclose all material information” (with reference to the concept of accounting). Justify either for or against by giving two reasons.
"Fixed assets should be valued at the market price." Comment.
Explain any two basic concepts of accounting.
Why are Generally Accepted Accounting Principles (GAAP) needed?
Explain the principle of consistency.
