Which of these ten accounting assumptions, principles, or constraints has the greatest effect on a company's...
Which of these ten accounting assumptions, principles, or constraints has the greatest effect on a company's financial statements:
Conservatism
Economic Entity
Expense recognition
Revenue recognition
Periodicity
Monetary unit
Materiality
Measurement
Going concern
Full disclosure
Please explain why.
Homework Answers
Revenue Recognition is the most important accounting principle to a company because the time of recognition of revenue plays a important role in deciding the profit of the company which the shareholders wants. The Total Company maintainance will be depending on the revenue it generates, therefore Revenue recognition is most important.
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