Creating provision for bad & doubtful debts in an application of which
Right Answer is: C
• Realisation Principle- this principle states that revenue can only be realized after the delivery of underlying goods or services associated with the revenue.
• Full Disclosure- a business must disclose all necessary information about their financial statements and other relevant information to all stakeholders.
• Conservation principle- this principle involve the creating provision for bad & doubtful debts.
• Money Measurement- this principle states that a company should record only those events or transaction in its financial statement which can be measured in the terms of money. When it is not possible to assign monetary value to a transaction it is not recorded in the financial statement.