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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
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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.
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संबंधित प्रश्न
Define the term GAAP.
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
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.
According to this principle, revenue is deemed to be realised when the goods have been transferred or the services have been rendered to a customer.
With reference to the concept of accounting only those transactions are recorded in accounts which can be expressed in terms of money. Justify either for or against.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
Explain matching principle of accounting.
Write short note on the going concern concept.
Explain the revenue principle.
Name any four concepts of GAAP.
