Commerce Exam > Commerce Videos > Dual Aspect or Double Entry System and Matching Principle
Dual Aspect or Double Entry System and Matching Principle Video Lecture - Commerce
FAQs on Dual Aspect or Double Entry System and Matching Principle Video Lecture - Commerce
| 1. What is the dual aspect or double entry system in accounting? |  |
Ans. The dual aspect or double entry system is a fundamental concept in accounting that states that every financial transaction has two aspects - a debit and a credit. This system ensures that the accounting equation (assets = liabilities + equity) remains in balance by recording both the sources and uses of funds for every transaction.
| 2. How does the dual aspect or double entry system work? | |
Ans. The dual aspect or double entry system works by recording every financial transaction in at least two accounts - one as a debit and the other as a credit. For example, if a company purchases inventory for cash, it will debit the inventory account to increase the asset and credit the cash account to decrease the asset. This ensures that the total debits always equal the total credits in the accounting records.
| 3. What is the matching principle in accounting? | |
Ans. The matching principle in accounting states that expenses should be recognized in the same period as the revenues they help generate. This principle ensures that financial statements accurately reflect the company's performance by matching the expenses incurred to earn revenue during a specific period.
| 4. How does the matching principle work in practice? | |
Ans. The matching principle is applied by recording expenses in the same period as the related revenues. For example, if a company sells products in December but incurs the cost of manufacturing those products in November, the matching principle requires the company to recognize the expenses in December when the revenue is earned. This ensures that the income statement accurately reflects the company's profitability for each period.
| 5. What is the importance of the dual aspect or double entry system and matching principle in accounting? | |
Ans. The dual aspect or double entry system and matching principle are essential in accounting as they ensure accurate and reliable financial reporting. The dual aspect system provides a systematic way of recording and summarizing financial transactions, enabling businesses to track their financial position and performance. The matching principle ensures that expenses are appropriately matched with the revenues they generate, providing a more accurate representation of a company's profitability. Both concepts help businesses make informed decisions, comply with accounting standards, and meet the needs of stakeholders.
Related Exams
About this Video
|
4.65/5 Rating |
|
Nov 08, 2024 Last updated |
Dual Aspect or Double Entry System and Matching Principle for Commerce2024 is part of Commerce preparation. The notes and questions for Dual Aspect or Double Entry System and Matching Principle
have been prepared according to the Commerce exam syllabus. Information about Dual Aspect or Double Entry System and Matching Principle covers all important topics
for Commerce2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises
and tests below for Dual Aspect or Double Entry System and Matching Principle.
Introduction of Dual Aspect or Double Entry System and Matching Principle in English is available as part of our Commerce preparation & Dual Aspect or Double Entry System and Matching Principle in Hindi
for Commerce courses. Download more important topics, notes, lectures and mock test series for Commerce Exam by
signing up for free.
Description
Video Lecture & Questions for Dual Aspect or Double Entry System and Matching Principle Video Lecture - Commerce - Commerce full syllabus preparation | Free video for Commerce exam.
Information about Dual Aspect or Double Entry System and Matching Principle
Here you can find the Dual Aspect or Double Entry System and Matching Principle defined & explained in the simplest way possible. Besides explaining types of Dual Aspect or Double Entry System and Matching Principle
theory, EduRev gives you an ample number of questions to practice Dual Aspect or Double Entry System and Matching Principle tests, examples and also practice Commerce tests.
|
Explore Courses for Commerce exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
past year papers
,Dual Aspect or Double Entry System and Matching Principle Video Lecture - Commerce
,Free
,Sample Paper
,Viva Questions
,ppt
,MCQs
,Exam
,video lectures
,Important questions
,Objective type Questions
,Dual Aspect or Double Entry System and Matching Principle Video Lecture - Commerce
,Dual Aspect or Double Entry System and Matching Principle Video Lecture - Commerce
,Extra Questions
,Summary
,Previous Year Questions with Solutions
,practice quizzes
,study material
,mock tests for examination
,shortcuts and tricks
,Semester Notes
;
Study Dual Aspect or Double Entry System and Matching Principle on the App
Students of Commerce can study Dual Aspect or Double Entry System and Matching Principle alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Dual Aspect or Double Entry System and Matching Principle,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Dual Aspect or Double Entry System and Matching Principle is prepared as per the latest Commerce syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup