Question

State whether the following statements are true or not. (1)
a) According to the Full Disclosure Principle, the items which would affect only the decision of the investors must be disclosed.
b) According to the Principle of Conservatism, anticipated profits (if any) must be added to the current accounting period’s profit.
c) According to the Revenue Recognition Concept, revenue is recognised when the right of receiving revenue comes into existence.

Answer 1

Answer:

1. False ( because it's material principal)

2.False (because anticipated losses should be recorded)

3.True(not sure)

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