Advertisements
Advertisements
प्रश्न
Accounting principles are necessary due to which of the following reasons?
पर्याय
To identify and classify economic transactions for meaningful presentation.
To ensure uniformity in accounting records.
These principles represent a scientific approach to financial statements.
All of these
Advertisements
उत्तर
All of these
Explanation:
Accounting principles are necessary for several reasons:
- To identify and classify economic transactions for meaningful presentation: These principles help in the correct identification and classification of financial transactions, ensuring that they are recorded and presented in a way that provides meaningful and useful information.
- To ensure uniformity in accounting records: Accounting principles provide a standardized approach to recording and reporting financial information, ensuring consistency and comparability across different organizations and time periods.
- These principles represent a scientific approach to financial statements: Accounting principles are based on established guidelines and methodologies, which provide a systematic and logical framework for preparing financial statements.
APPEARS IN
संबंधित प्रश्न
Explain the Money Measurement Concept.
Define the term GAAP.
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.
What is business entity concept of accounting?
Name the basic principles of accounting.
“Every transaction has two effects.” (with reference to the concept of Accounting). Give a reason either for or against.
"Every transaction affects at least three accounts." Comment.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
Explain the principle of consistency.
