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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.
______ is the language of business.
According to this concept, a business firm is treated as a unit separate and distinct from its owners.
This concept assumes that the business will continue to exist for a long time in the future.
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
This principle suggests that every debit has a corresponding and equal credit.
What is meant by going concern concept of Accounting.
Every transaction has two effects. (with reference to the concept of Accounting). Give a reason either for or against.
Explain the realisation principle.
