What is the full form of GAAP?
______ states that the business and its owners are two separate and distinct entities.
______ states that only those transaction which can be measured and expressed in term of money are recorded in the books of accounts.
______ implies that the total life of the business is divided into different imaginary time interval and such time interval contain 12 months for the purpose of recording and reporting the financial performance to the concerned parties.
______ states that revenue is assumed to be earned when goods are sold or services rendered to the customers either on cash or credit.
______ implies that when the fixed assets are purchased they are to be recorded in the books of accounts at their cost price.
______ implies that the revenue earned has to be compared with the expenses incurred in the same period to determine the true profit or loss of the business.
______ states that every business transaction has two-fold effects.