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प्रश्न
"The principle of full disclosure and principle of materiality are contradictory." Comment.
उत्तर
The principle of full disclosure requires that accounts must disclose all material facts to stakeholders. The principle of materiality requires that items having insignificant effect need not be disclosed. The two principles are not contradictory because both suggest recording and disclosure of only material facts which can influence decisions of investors.
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संबंधित प्रश्न
Accounting principles are necessary due to which of the following reasons?
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.
"Firms live forever." Explain with reference to the concept of accounting.
Accounts should disclose all material information (with reference to the concept of accounting). Justify either for or against by giving two reasons.
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.
Write short note on Going Concern Concept.
Explain the complete disclosure principle.
Explain the expense principle.
