Question

Caliber or quality of management team is not directly disclosed in the balance sheet . Name and explain the principal of account ing in the following cases:

Answer 1

Answer:

These cannot be disclosed in the balance sheet as they cannot be measured in terms of money and hence no transaction can be recorded. Even though they impact the functioning of business but they cannot be measured in terms of money. If we record these transactions then it would violate the financial bases of accounting.

Answer 2

Answer:

disclousure ..................