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प्रश्न
Why are Generally Accepted Accounting Principles (GAAP) needed?
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
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?
Explain the concept of The Dual Aspect Principle.
Accounting principles are necessary due to which of the following reasons?
______ is the language of business.
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"Fixed assets should be valued at the market price." Comment.
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Explain The Dual Aspect Principle.
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"The principle of full disclosure and principle of materiality are contradictory." Comment.
