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प्रश्न
"The principle of full disclosure and principle of materiality are contradictory." Comment.
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उत्तर
The principle of full disclosure requires that accounts must disclose all material facts to stakeholders. The principle of materiality requires that items having insignificant effect need not be disclosed. The two principles are not contradictory because both suggest recording and disclosure of only material facts which can influence decisions of investors.
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संबंधित प्रश्न
What does GAAP stand for in Accounting?
Define the term GAAP.
Accounting principles are necessary due to which of the following reasons?
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
"Firms live forever." Explain with reference to the concept of accounting.
Every transaction has two effects. (with reference to the concept of Accounting). Give a reason either for or against.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
Explain Accounting Period Concept.
Why are Generally Accepted Accounting Principles (GAAP) needed?
Explain the expense principle.
