Q.1 Explain: (i) Business Entity Principle
(ii) Money Measurement Principle
(iii) Accounting Period Principle (iv) Full disclosure Principle
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1. business entity principle means business and business holder both are separate entity so the business holder is not liable for any liability of business and vice versa.
2. According to Money Measurement principle in accounting only those transactions are recorded which can be measured in money and other non monetary transactions are avoided .
3.
according to accounting principle any organisation and business record it's accounting statements in accounting period which may be any 12 months period but in India the accounting period start from 1st April to 31st March also called closing
4. According to accounting principle full disclosure business and Organisation will disclose all related information or all important information regarding all transaction.
2. According to Money Measurement principle in accounting only those transactions are recorded which can be measured in money and other non monetary transactions are avoided .
3.
according to accounting principle any organisation and business record it's accounting statements in accounting period which may be any 12 months period but in India the accounting period start from 1st April to 31st March also called closing
4. According to accounting principle full disclosure business and Organisation will disclose all related information or all important information regarding all transaction.
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