Write short notes on: a. Dual Aspect concept b. IFRS
Understand the Problem
The question asks for short notes on two accounting concepts: the Dual Aspect concept and IFRS (International Financial Reporting Standards). The Dual Aspect concept is the foundation of the double-entry bookkeeping system, while IFRS are a set of accounting standards used globally.
Answer
A. Dual aspect concept: every transaction impacts two accounts equally and oppositely. B. IFRS: globally recognized accounting standards for financial statement comparability.
A. The dual aspect concept is a fundamental accounting principle. It states that every transaction has two equal and opposite effects on a company's accounting equation, meaning every debit has a corresponding credit.
B. IFRS refers to International Financial Reporting Standards. They are a set of globally recognized accounting standards used in many countries to ensure financial statements are comparable and transparent.
Answer for screen readers
A. The dual aspect concept is a fundamental accounting principle. It states that every transaction has two equal and opposite effects on a company's accounting equation, meaning every debit has a corresponding credit.
B. IFRS refers to International Financial Reporting Standards. They are a set of globally recognized accounting standards used in many countries to ensure financial statements are comparable and transparent.
More Information
The dual aspect concept is also known as duality.
Tips
A common mistake is thinking the dual aspect concept means a transaction only affects one account. It always affects at least two.
Sources
- Understanding the Dual Aspect Concept | GoCardless - gocardless.com
- Dual Aspect Concept in Accounting: meaning, definition, example - byjus.com
- Dual Aspect Concept: Meaning and Examples - Shiksha - shiksha.com
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