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प्रश्न
Explain the principle of consistency.
थोडक्यात उत्तर
उत्तर
- It is possible to adopt a variety of principles and procedures for business transactions. An accountant is often faced with a choice of methods of dealing with certain items like depreciation of fixed assets, valuation of closing stock etc. Having made his choice, he should follow it consistently so that the figures of one accounting period may be comparable with those for another.
- Hence whatever accounting method a business unit decides to adopt, a consistent approach has to be followed for different accounting periods. However, consistency does not prohibit a change in accounting policies. Necessary required changes are fully disclosed by presenting them in the financial statements indicating their probable effects on the financial results of the business.
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Generally Accepted Accounting Principles (GAAP)
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संबंधित प्रश्न
What does GAAP stand for in Accounting?
Justify the following:
Every transaction is recorded in at least three accounts.
According to this principle, cost of a particular period should be charged from the revenue of same period only.
Explain 'Matching Concept' of GAAP.
Discuss in brief the basic principles of accounting.
"Every transaction affects at least three accounts." Comment.
"Accounting records serve as a source of information to the creditors of an organisation". Comment.
Explain matching principle of accounting.
Why are Generally Accepted Accounting Principles (GAAP) needed?
Explain the realisation principle.
