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
The retirement of manager of the company cannot be recorded in the book of accounts, because it is not possible to estimate the financial effect of retirement. Which accounting principle would be applicable for the above statement?
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
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.
According to Business Entity Concept:
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.
Explain 'Matching Concept' of GAAP.
Explain the money measurement principle of accounting.
Explain any two basic concepts of accounting.
Explain the expense principle.
Explain the principle of consistency.
