Question
Which accounting concept restricts a firm from booking
advance amount received from customers as a sale in the books of accounts?Solution
The accrual accounting concept recognizes revenue when it is earned and expenses when they are incurred, regardless of the timing of cash transactions. When an advance amount is received from customers, it represents a liability until the goods or services are delivered. It is only considered as a sale when the revenue is earned, which aligns with the accrual accounting principle.
Which one of the following statements is true
What is Universal Banking?
Which of the following is not a debt security?
In which year the first Bank of India was established?
Which of the following person is not the Deputy Governor of RBI?
IFSC Code contains how many characters that facilitate fund transfer in any part of the country?
India’s first regional rural bank is ___________
Which of the following statements is true about Debt-Service Ratio?
The new rupee symbol is presented by the Government of India in
Escorts has signed MoU with ________ for tractor financing.