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प्रश्न
Explain the principle of Timeliness.
उत्तर १
Financial statements provide useful information on the basis of which users take important decisions. If the statements contain old and late information they are of little use. Therefore, this principle states that the financial statements should be prepared quickly at the end of the accounting period. They should be made available to the users at the earliest possible time. To ensure timely information, the Companies Act requires companies to report quarterly results of their operations.
उत्तर २
According to this principle, an accounting system should be established in such a fashion that it provides information to all users in a timely manner. If timely information is available to the management, corrective steps can be immediately taken. In India, there is a provision for publishing half-yearly financial reports of the companies. This provides timely information to investors and potential investors to make their investment decisions.
संबंधित प्रश्न
This principle states that accounting procedures and methods should remain consistent from one year to another.
According to this principle, record all anticipated losses but ignore all anticipated gains. Industry practice.
This principle states that the financial statements should be prepared quickly at the end of the accounting period.
This principle is an exception to the principle of full disclosure.
Closing stock is always valued at market price. Justify for or against by citing two reasons.
Explain the principle of materiality.
"Principle of consistency is a modifying principle." Comment.
Name and explain the accounting convention which says record all anticipated losses but ignore all anticipated gains.
Explain the Principle of Prudence.
Explain the accounting conventions.
