GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following principles is not related to the preparation of profit and loss account?
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Accrual concept
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Matching concept
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Dual aspect concept
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Accounting period concept
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Explanation:
Detailed explanation-1: -What is dual aspect in accounting? The dual aspect concept forms the basis of the double-entry accounting method. This requires that each business transaction be recorded in two separate accounts. According to the dual aspect concept, every transaction impacts the business in two ways which must be equal and opposite.
Detailed explanation-2: -The dual aspect concept states that since every transaction has a dual effect, the accounting records must reflect the same to show the accurate movement of funds. For instance, a buyer pays cash in return for a purchased item while the seller gains cash for the sold item.
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