Advertisements
Advertisements
Question
Explain the expense principle.
Solution
The expense principle states that expenses are recognised when the assets or services are used to produce revenue and not when the cash is paid. In other words, expenses should be recognised whenever incurred, irrespective of whether cash is paid or not.
APPEARS IN
RELATED QUESTIONS
Accounting principles are necessary due to which of the following reasons?
This concept assumes that the business will continue to exist for a long time in the future.
Name the basic principles of accounting.
Explain 'Matching Concept' of GAAP.
Discuss in brief the basic principles of accounting.
"The capital provided by the owner is treated as a liability of the firm." Explain the concept on which the above depends.
Explain the money measurement principle of accounting.
Write short note on Going Concern Concept.
Explain the complete disclosure principle.
Explain the realisation principle.
