CPT - A WOUNDERFUL QUESTION

This query is : Resolved

Abhishek (Querist)
Follow

15 May 2009 Name: Abhishek Sharma
Membership/ Student Reg. No.:
Region: Amritsar , Punjab
Postal Address: Hno.- 330 , ram nagar colony , Islamabad, Amritsar.
Telephone(s)/ Mobile(s) No.: 2401653
E-mail Id: mr.abhi330@yahoo.co.in
Your Ideas/ Thoughts/ Suggestions: Sir,
1). Economic Life of an enterprise is split into the periodic interval as per
a) Periodicity Principal
b) Matching ,,
c) Going Concern ,,
d) Accrual. ,,,
Sir, if you Answer this question WITH REASON it will be great help of mine.
THANKS.

Vipul J. Bhavsar

Vipul J. Bhavsar (Expert)
Follow

15 May 2009 Dear,first of all, this is a wonderful question and not Wounderful question...
First let me explain you all the given terms:(In layman language)
1)Periodicity Principal-It refers to the time period which is fixed/adopted for the purpose of reporting of the Financial Performance of the concern
2)Matching-E.g. if Revenue is accounted from Mr.X then expenses incurred for supplying good/service to Mr.X should also be accounted.
3)Going Concern-An accounting assumption that the concern will carry on the business for a long period and has no intention to close nor the necessity of liquidation in near future.
4)Accrual-It is the method of Accounting which requires to account for income and expenses as it accrues or becomes due or paid whichever is applicable. It is not as per the cash basis of accounting where expenses and income are recorded as and when cash is received or paid.

Now, the answer is...Periodicity Principal.

Online classes for CA CS CMA