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प्रश्न
Why are Generally Accepted Accounting Principles (GAAP) needed?
Why accounting principles are necessary.
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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
Explain the concept of The Dual Aspect Principle.
Accounting principles are necessary due to which of the following reasons?
On the basis of this concept, only those transactions are recorded in accounts which can be expressed in terms of money.
This principle suggests that every debit has a corresponding and equal credit.
According to this principle, accounts should be prepared in such a way that all the material information required by users of financial statements is clearly disclosed.
What is meant by going concern concept of Accounting.
Name the basic principles of accounting.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
Explain matching principle of accounting.
Explain the realisation principle.
