What are accounting Principles?
Answers were Sorted based on User's Feedback
Answer / m rajesh
Accounting principles classified in to to three types
personal A/c : Debit the receiver credit the giver
Real A/c : Debit what comes in credit was goes out.
Nominal A/c : Debit all expences and loses, and credit
all income and gain.
Is This Answer Correct ? | 13 Yes | 16 No |
Answer / shaik
Principles derive from tradition, such as the concept of
matching. In any report of financial statements (audit,
compilation, review, etc.), the preparer/auditor must
indicate to the reader whether or not the information
contained within the statements complies with GAAP.
Principle of regularity: Regularity can be defined as
conformity to enforced rules and laws.
Principle of consistency: This principle states that when a
business has once fixed a method for the accounting
treatment of an item, it will enter all similar items that
follow in exactly the same way.
Principle of sincerity: According to this principle, the
accounting unit should reflect in good faith the reality of
the company's financial status.
Principle of the permanence of methods: This principle aims
at allowing the coherence and comparison of the financial
information published by the company.
Principle of non-compensation: One should show the full
details of the financial information and not seek to
compensate a debt with an asset, a revenue with an expense,
etc. (see convention of conservatism)
Principle of prudence: This principle aims at showing the
reality "as is" : one should not try to make things look
prettier than they are. Typically, a revenue should be
recorded only when it is certain and a provision should be
entered for an expense which is probable.
Principle of continuity: When stating financial
information, one should assume that the business will not
be interrupted. This principle mitigates the principle of
prudence: assets do not have to be accounted at their
disposable value, but it is accepted that they are at their
historical value (see depreciation and going concern).
Principle of periodicity: Each accounting entry should be
allocated to a given period, and split accordingly if it
covers several periods. If a client pre-pays a subscription
(or lease, etc.), the given revenue should be split to the
entire time-span and not counted for entirely on the date
of the transaction.
Principle of Full Disclosure/Materiality: All information
and values pertaining to the financial position of a
business must be disclosed in the records.
Is This Answer Correct ? | 0 Yes | 3 No |
Answer / manisha sahu
accounting principle are man made.These are suggestions
based on practical experience of accountant.It developed to
ensure uniformity and understandadability.
Is This Answer Correct ? | 0 Yes | 3 No |
Answer / jagrati
Personal a/c, Real a/c and Nominal a/c are the types of
accounts and these are used as a rules of accounting but
not are the principles of accounting.
Accounting Principles are:
1. Principle of Going concern
2. Principle of Dual aspect
3. Principle of Accrual basis and
4. Principle of Consistency
5. Principle of Prudence or conservatism etc.
Is This Answer Correct ? | 5 Yes | 14 No |
Answer / shyam manoj kumar
Accounting Principles:
Basically there are three accounting principle
1)Personal Accounting
2)Real Accounting
3)Nominal Accounting
Personal Account:Debit the received,credit the giver
Real Accounting: Debit what comes in,credit what goes out
Nominal Accounting :Debit all losses and expenses credit
all gains and incomes
Is This Answer Correct ? | 9 Yes | 19 No |
Answer / guest
personel a/c:debit the reciever,credit the giver
real a/c :debit wht comes in, credit what goes out
nominal a/c :debit all expences and losses,cedit all income
and gains
Is This Answer Correct ? | 4 Yes | 15 No |
Answer / dinesh jain
Accounting Principal as like Science who is treat the
Business as like Science Principal .Accounting Principal
Give to Business A power than business Run As like a
aroplan .Accouting Pricipal Debit & Credit System.
there are 3 types of accounting principals
1. personnel accoumt:- debit the receiver and credit the
giver,
2. real account:- debit what comes in and credit what goes
out.
3. nominal account:- debit all expenses and losses and
credit all gains and incomes.
Is This Answer Correct ? | 7 Yes | 19 No |
Answer / lavanya
Books, ex. Daybook, bank
book, purchase sales account and vouchers. regular invertory
process
Is This Answer Correct ? | 7 Yes | 20 No |
Answer / althaf ahmed
Maintaining the complete records in procedure for the
financial year.
Is This Answer Correct ? | 6 Yes | 19 No |
Answer / devendra verma
1:- basic assumptions or concepts
2:- basic principles
3:- modifying principles
thats end
Is This Answer Correct ? | 4 Yes | 17 No |
On What Basis Securities Should Be Selected?
When purchasing a stock what charges are payable?
Explain liquid ratio/ acid ratio/ quick ratio.
what is Predecessor Company?
What is GDP???
19 Answers Satyam, State Bank Of India SBI,
Name the fully owned subsidiaries of rbi?
What is promissory note (pn)?
what is the meaning of portfolio management? what comes under portfolio management
20 Answers Indiabulls, Infosys, SMC, Vandy,
Do you know what negative interest rate policy is? Why does Japan adopt it?
HOW DO YOU DEFINE RESEARCH? AND EXPLAIN HOW RESEARCHH HELPS FOR BETTER DECISION MAKING IN A FMCG COMPANY.
Explain overall profitability group ratios.
Expand CTS.