![]() ![]() Transaction should be recorded when not doing so might alter the decisions made by a reader of a company's financial statements.The materiality principle permits other concepts to be ignored if the effect is not considered material. This principle is an exception to full disclosure.Omission of paise and showing the round figures in financial statements is based on the Materiality concept. Revenue is generally recognized at the point of sales in accordance with the Revenue Recognition principle and not matching principle.The assets are classified as current assets and fixed assets in accordance with Going concern assumption not Accounting Period Assumption.Economic life of an enterprise is artificially split into periodic intervals in accordance with the Accounting period assumption not Going concern assumption.Despite the fact that accounting often examines the statistics underlying finances, it aids and is connected to economics, a field of the social sciences.Accounting creates documents and information about financial transactions, then classifies, arranges, and examines this data to produce reports. Although accounting is a continually changing field and not an exact science, accountants study social science and humanities.When seen in the context of government taxation, or how money and the accounting of products and finances effect people and society, accounting can be thought of as a social science.Key Points Accounting is a social science. The correct answer is Accounting is a social science.
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