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प्रश्न
Explain the Business Entity Concept.
उत्तर
According to this concept, a business's transactions have to be documented independently from those of its owners and other businesses. Put another way, only events that have an impact on a specific firm are recorded when it comes to transactions in that business. This idea is crucial because accounting information becomes useless if a company's transactions are combined with those of its owners or other companies.
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संबंधित प्रश्न
GAAP stands for ______.
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
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.
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.
Explain 'Matching Concept' of GAAP.
"Fixed assets should be valued at the market price." Comment.
"Every transaction affects at least three accounts." Comment.
