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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?
Explain the need for GAAP for accounting.
______ is the language of business.
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, revenue is deemed to be realised when the goods have been transferred or the services have been rendered to a customer.
What is meant by going concern concept of Accounting.
Explain Matching Concept of GAAP.
Discuss in brief the basic principles of accounting.
Explain matching principle of accounting.
