According to _______ concept transaction and other events should be accounted for and presented in accordance with their substance and financial reality and not merely with their legal form.

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Substance over form

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Solution

The correct option is D Substance over form
According to substance over form concept transaction and other events should be accounted for and presented in accordance with their substance and financial reality and not merely with their legal form.
This concept means that the economic substance of transactions and events must be recorded in the financial statements rather than just the legal form of the transaction/event in order to present a true and fair view of the financial statements.

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Similar questions

According to accrual concept of accounting, financial or business transaction is recorded:

List-I(Accounting concept)	List-II(Principle involved)
I. Consistency	(a) Losses are anticipated and accounted for in advance but profits are not accounted for until realised
II. Comparability	(b) All the relevant financial information should be summarised and presented in the accounting statements
III. Conservatism	(c) According procedures in an entity should be followed uniformly from period to period
IV. Disclosure	(d) Accounting statement of different periods of an entity and those of different entities of a period should be based on the same accounting principles and procedures
	(e) Personal Judgement of accountants should not influence accounting measurements

According to which concept, the financial records should always be published in a definite time period?

Accounting records business transactions and events which are of a financial nature.Is this a limitation of accounting?

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