Question

Under which Principle of accounting adjustments relating to prepaid expenses, outstanding expenses,
advance incomes and accrued incomes are to be made:
(a) Principle of Going Concern. (b) Dual Aspect Concept. (c) Matching Principle.
(d) None of these. ​

Answer 1

Answer:

These basic accounting concepts are as follows: Accruals concept. Revenue is recognized when earned, and expenses are recognized when assets are consumed. ... Economic entity concept. The transactions of a business are to be kept separate from those of its owners.