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प्रश्न
Accounting principles are necessary due to which of the following reasons?
विकल्प
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
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
Justify the following:
Every transaction is recorded in at least three accounts.
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?
This principle suggests that every debit has a corresponding and equal credit.
"Firms live forever." Explain with reference to the concept of accounting.
Accounts should disclose all material information (with reference to the concept of accounting). Justify either for or against by giving two reasons.
Every transaction has two effects. (with reference to the concept of Accounting). Give a reason either for or against.
Discuss in brief the basic principles of accounting.
"Every transaction affects at least three accounts." Comment.
Explain matching principle of accounting.
Explain the complete disclosure principle.
