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प्रश्न
Explain any two basic concepts of accounting.
थोडक्यात उत्तर
उत्तर
- The Revenue Principle: This principle suggests that revenue should be treated as realised whenever the ownership of goods changes. It is immaterial whether the revenue is received in cash or not.
- The Expense Principle: According to this principle, every cost which is incurred to earn revenue is known as expense. Costs incurred on manufacturing, selling and distributing goods and services are expenses. Expenses should be recognised whenever incurred, irrespective of whether cash is paid or not.
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Generally Accepted Accounting Principles (GAAP)
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
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संबंधित प्रश्न
What does GAAP stand for in Accounting?
This principle suggests that every debit has a corresponding and equal credit.
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.
"Every transaction affects at least three accounts." Comment.
Explain matching principle of accounting.
Explain The Dual Aspect Principle.
Why are Generally Accepted Accounting Principles (GAAP) needed?
Explain the principle of consistency.
"The principle of full disclosure and principle of materiality are contradictory." Comment.
