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Why is the revenue recognition principle needed what does it demand?
Wiki User
∙ 11y ago
plz tell me that ,ans of that ,3rd point that ,to enable the securing of loan or??
Wiki User
∙ 11y ago
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What are GAAPs?
© Business Entity Concept Accounting records be kept separate to owners records, other business etc. © The Continuing Concern Concept A business will continue to operate unless it is known that it will not. © The Principle of Conservatism All records must be fair and reasonable. © The Objectivity Principle Recorded on the basis of objective evidence. Objective evidence means anyone looking at the evidence will arrive at the same answer. © Revenue Recognition Convention States that revenue is recorded in the accounts at the same time the transaction is completed. © Time Period Concept Provides that accounting take place over the fiscal periods. © The matching Principle An extension of revenue recognition. Each expense item related to revenue earned must be recorded in the same accounting period as the revenue it helped to earn. © The Cost Principle The accounting for purchases must be at the cost price to the purchaser. © The Consistency Principle Business must use the same accounting methods and procedures from period to period. © The Materiality Principle The materiality principle requires accountants to follow generally accepted accounting principles except when to do so would be expensive or difficult. © The Full Disclosure Principle States that all the information needed for a full understanding of a company's financial statements must be included.
If an adjustment is needed for unearned revenues...?
If an adjustment is needed for unearned revenues, the liability is overstated and the related revenue is understated before adjustment. Another word for revenue is income.
How do you write letter for Date extension of demand draft?
When writing a letter for an extension on a demand draft, it is important to write the reason an extension is needed. It is also important to state how long the extension is needed.
Accruals are needed when an unrecorded expense has been incurred or an unrecorded revenue has been earned?
true
Are 'revenue' and 'net sale' the same thing?
Net sales and revenues are important in the business community. Both are needed for a business to succeed. However, they are not the same thing. Sales lead to revenue.
What are GAAPs?
© Business Entity Concept Accounting records be kept separate to owners records, other business etc. © The Continuing Concern Concept A business will continue to operate unless it is known that it will not. © The Principle of Conservatism All records must be fair and reasonable. © The Objectivity Principle Recorded on the basis of objective evidence. Objective evidence means anyone looking at the evidence will arrive at the same answer. © Revenue Recognition Convention States that revenue is recorded in the accounts at the same time the transaction is completed. © Time Period Concept Provides that accounting take place over the fiscal periods. © The matching Principle An extension of revenue recognition. Each expense item related to revenue earned must be recorded in the same accounting period as the revenue it helped to earn. © The Cost Principle The accounting for purchases must be at the cost price to the purchaser. © The Consistency Principle Business must use the same accounting methods and procedures from period to period. © The Materiality Principle The materiality principle requires accountants to follow generally accepted accounting principles except when to do so would be expensive or difficult. © The Full Disclosure Principle States that all the information needed for a full understanding of a company's financial statements must be included.
What is the break even revenue?
Amount of revenue that is needed to cover all of the fixed costs.
What is the meaning of to meet demand?
Demand means what is needed or wanted. If you meet that, you produce or supply as much as is needed or wanted.
If an adjustment is needed for unearned revenues...?
If an adjustment is needed for unearned revenues, the liability is overstated and the related revenue is understated before adjustment. Another word for revenue is income.
What is the revenue recognition priniciple needed?
1. To ascertain the income of the government from all sources of payment from customers 2. To know the profit and loss ascertain for the financial year of account. 3. To enable the securing of loan or financial trade credit facilities
Subjects needed to be an entrepreneur?
principles of acconuts ,principle of buisness,
Why did concord stop?
The service didn't generate the revenue needed to keep it running.
What is transaction demand?
Transaction demand is the money needed by a person or company for their needs. It can tract the demands of an economy, with high demand as indicator for good economy.
Why the principle was created?
because they really needed to create one of those
What is another way to say 'as needed basis'?
"only on demand"
Why did the British choose to tax American colonists?
because they needed a way of revenue, or income.
What kind of recognition did Cleopatra get?
Cleopatra was considered very smart, cunning, and did what she needed to do to gain Egypt.
