Question

identify the concept mentioned in the following statements.
a) sales are recorded as revenue when goods are delivered to end users
b) for every debit there should be corresponding credit. ​

Answer 1

Answer:

Accounting Concepts :

a ) Sales are recorded as revenue when goods are delivered to end users

• Revenue Recognition Concept

This Concept requires that the revenue for a business transaction should be considered realised when a legal right to receive it arises.

b ) For every debit there should be corresponding credit.

• Dual Aspect Concept

According to this Concept every transaction has a dual effect receiving aspect and giving aspect. Accounting Equation is developed with the help of dual aspect concept.

Assets = Liabilities + Capital

Other Accounting Concepts :

Accounting Concepts are the fundamental ideas or basic assumptions underlying the theory and practice of financial accounting. They are ;

• Business Entity Concept

• Money measurment Concept

• Going Concern Concept

• Accounting Period Concept

• Cost Concept

• Matching Concept

• Consistency Concept

• Full Disclosure Concept

• Conservation Concept

• Materiality Concept

• Objectivity Concept