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प्रश्न
Why are Generally Accepted Accounting Principles (GAAP) needed?
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उत्तर
Accounting principles are necessary due to the following reasons:
- Accounting principles facilitate uniformity in accounting practices. The information become comparable, leading to better analysis and comparison of performances.
- Accounting principles facilitate meaningful presentation.
- They ensure consistency in the accounting statements of a business enterprise from year to year.
- They may be regarded as a means to establish that the collective wisdom and experience, rather than the viewpoint of individual accountant, may prevail in the matter.
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संबंधित प्रश्न
According to the ______ Principle of accounting, transactions are recorded on the assumption that the business will exist for an indefinite period of time.
Explain the Business Entity Concept.
Explain the Money Measurement Concept.
Justify the following:
Every transaction is recorded in at least three accounts.
The retirement of manager of the company cannot be recorded in the book of accounts, because it is not possible to estimate the financial effect of retirement. Which accounting principle would be applicable for the above statement?
Accounts should disclose all material information (with reference to the concept of accounting). Justify either for or against by giving two reasons.
Explain the money measurement principle of accounting.
Explain any two basic concepts of accounting.
Explain The Dual Aspect Principle.
Explain the realisation principle.
