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Question
Name the basic principles of accounting.
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Solution
The basic principles of accounting are given below.
- The Business Entity Concept
- The Going Concern Concept
- Money Measurement Concept
- Accounting Period Concept
- The Matching Principle
- The Dual Aspect Principle
- The Complete Disclosure Principle
- The Revenue Principle
- The Expense Principle
- The Realisation Principle
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RELATED QUESTIONS
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.
According to this principle, cost of a particular period should be charged from the revenue of same period only.
"Firms live forever." Explain with reference to the concept of accounting.
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.
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.
Explain Accounting Period Concept.
Write short note on the going concern concept.
Why are Generally Accepted Accounting Principles (GAAP) needed?
