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प्रश्न
According to Business Entity Concept:
पर्याय
Distinction should be made between fixed assets and current assets.
Distinction should be made between business transactions and personal transactions.
Distinction should be made between Capital expenditure and revenue expenditure.
Accounting equation is always true.
उत्तर
Distinction should be made between business transactions and personal transactions.
Explanation:
The Business Entity Concept states that a business is treated as a separate legal entity from its owners. This means that there should be a clear distinction between the business's financial transactions and the personal financial transactions of its owners. The financial records of the business should only include business transactions, ensuring that the financial statements accurately reflect the business's financial position.
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संबंधित प्रश्न
What does GAAP stand for in Accounting?
Explain the need for GAAP for accounting.
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
What is meant by going concern 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.
"Fixed assets should be valued at the market price." Comment.
Explain the money measurement principle of accounting.
Write short note on Going Concern Concept.
Explain the expense principle.
Explain the realisation principle.
