Any information useful to decision makers should be provided in the financial statements, subject to the...
Any information useful to decision makers should be provided in the financial statements, subject to the cost effectiveness constraint. This describes which accounting principle?
a) historical cost principle
b)realization principle
c)matching principle
d) full-disclosure principle
Homework Answers
Answer
full-disclosure principle is the accounting principle which describes that any information useful to decision makers should be provided in the financial statements, subject to the cost effectiveness constraint
whereas
historical cost principle is the principle where assets are recorded at historical values
realization principle means revenue can be realized or recorded when the service related to revenue has been made
matching principle means matching revenue with the expenses incurred in the year.
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