Advertisements
Advertisements
प्रश्न
Explain the revenue principle.
उत्तर
The revenue principle states that revenue should be recognised when the goods are delivered by sellers and accepted by buyer, i.e., ownership of, goods changes. Hence the revenue is assumed to be realised when a legal right to receive it arises. Credit sales are treated as revenue on the day sales are made and not when money is received from the buyer.
APPEARS IN
संबंधित प्रश्न
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?
According to this principle, cost of a particular period should be charged from the revenue of same period only.
What is business entity concept of accounting?
Explain 'Matching Concept' of GAAP.
"The capital provided by the owner is treated as a liability of the firm." Explain the concept on which the above depends.
"Fixed assets should be valued at the market price." Comment.
"Every transaction affects at least three accounts." Comment.
Explain the expense principle.
Name any four concepts of GAAP.
"The principle of full disclosure and principle of materiality are contradictory." Comment.
