Advertisements
Advertisements
Questions
Define the term GAAP.
What are Generally Accepted Accounting Principles (GAAP)?
Define the term Generally Accepted Accounting Principles (GAAP).
Advertisements
Solution
Accounting principles refer to the concepts, conventions and standards which are widely accepted and adopted by accountants while recording and reporting financial information. According to Robert Anthony, "the rules and conventions of accounting are commonly referred to as principles."
Notes
Students should refer to the answer according to their questions.
APPEARS IN
RELATED QUESTIONS
Explain the Money Measurement Concept.
The retirement of manager of the company cannot be recorded in the book of accounts, because it is not possible to estimate the financial effect of retirement. Which accounting principle would be applicable for the above statement?
It is due to this concept that financial statements are prepared at regular intervals, generally one year.
What is business entity concept of accounting?
Name the basic principles of accounting.
Explain Matching Concept of GAAP.
"Every transaction affects at least three accounts." Comment.
Explain Accounting Period Concept.
Explain the complete disclosure principle.
Explain the principle of consistency.
