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State the name of the accounting principle, concept or convention with which the following statements or situations are associated:1. Frequent changes in the methods of depreciation or stock valuation should be avoided.2. When goods are purchased, on credit from a supplier, the Purchase should be recorded in accounts immediately, even though cash is not yet paid for such purchase as the amount becomes payable once the goods are purchased. |
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Answer» 1. According to Consistency concept, frequent changes in the method of depreciation or stock valuation should be avoided. 2. According to Accrual concept, when goods are purchased on credit from a supplier, the purchase should be recorded in accounts immediately, even though cash is not yet paid for such purchase as the amount becomes payable once the goods are purchased. |
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