Explain Consistency assumption and Revenue Recognition principal of accounting.
Asked by Topperlearning User | 4th Jul, 2016, 08:16: AM
Consistency Assumption: Accounting policies and practices followed by an enterprise should be uniform and consistent over a period of time. However, consistency does allow changes in accounting policies but it should be disclosed.
Revenue Recognition principal of accounting: Revenue is considered as income earned on a particular date when it is realised; say when a transaction has been entered and obligation to receive the amount has been established.
Answered by | 4th Jul, 2016, 10:16: AM
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