Advertisements
Advertisements
प्रश्न
Explain the principle of consistency.
थोडक्यात उत्तर
Advertisements
उत्तर
- It is possible to adopt a variety of principles and procedures for business transactions. An accountant is often faced with a choice of methods of dealing with certain items like depreciation of fixed assets, valuation of closing stock etc. Having made his choice, he should follow it consistently so that the figures of one accounting period may be comparable with those for another.
- Hence whatever accounting method a business unit decides to adopt, a consistent approach has to be followed for different accounting periods. However, consistency does not prohibit a change in accounting policies. Necessary required changes are fully disclosed by presenting them in the financial statements indicating their probable effects on the financial results of the business.
shaalaa.com
Generally Accepted Accounting Principles (GAAP)
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
APPEARS IN
संबंधित प्रश्न
Justify the following:
Every transaction is recorded in at least three accounts.
Explain the need for GAAP for accounting.
Explain the concept of The Dual Aspect Principle.
GAAP stands for ______.
"Firms live forever." Explain with reference to the concept of accounting.
Every transaction has two effects. (with reference to the concept of Accounting). Give a reason either for or against.
Explain the money measurement principle of accounting.
Explain matching principle of accounting.
Explain the complete disclosure principle.
"The principle of full disclosure and principle of materiality are contradictory." Comment.
