Advertisements
Advertisements
Question
This principle suggests that every debit has a corresponding and equal credit.
Options
Matching principle
Principle of full disclosure
Dual aspect principle
Realisation concept
Advertisements
Solution
Dual aspect principle
Explanation:
The dual aspect principle is a fundamental concept in accounting that suggests every financial transaction has two aspects: a debit and a corresponding and equal credit. This principle ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced, as every transaction affects at least two accounts in opposite ways.
APPEARS IN
RELATED QUESTIONS
According to the ______ Principle of accounting, transactions are recorded on the assumption that the business will exist for an indefinite period of time.
______ is the language of business.
According to this principle, accounts should be prepared in such a way that all the material information required by users of financial statements is clearly disclosed.
Name the basic principles of accounting.
“Every transaction has two effects.” (with reference to the concept of Accounting). Give a reason either for or against.
Explain the Dual Aspect Principle.
Explain Accounting Period Concept.
Why are Generally Accepted Accounting Principles (GAAP) needed?
Explain the realisation principle.
Name any four concepts of GAAP.
