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This principal says that it is important to record different accounting transactions at the time when they have actually occurred. It is not recommended to record transactions when cash flow happens. This is the most important concept of the accrual principle.
Here it is also important to prepare financial statements that will show what actually happened during the accounting period. Again if you face problems getting fundamental accounting principles chapter 3 answers then you can surely get in touch with us at myhomeworkhelp.
According to this principle if there is some sort of uncertainty about outcome then it is essential to record both liabilities as well as expenses. If an organization is not very sure about whether it will be able to earn particular revenue then it should not record it.
However if they are unsure about a loss that they may have to incur then it is important to record. This principle states that when an organization adapts an accounting method then it should continue following it till another better method is adapted. If an organization does not follow this principle then the business will follow different accounting principles. Following different accounting principles at different times makes it difficult for an organization to measure its financial result.
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Dec 07, · Fundamental Accounting Principle Chapter 3 Answers. Here is a List of the Basic Accounting Principles. If you want to pursue the career of an accounting then it is immensely important to understand the basic accounting principles. There are a number of accounting principles that have been developed in recent times/5().
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