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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
Explain the Business Entity Concept.
Explain the need for GAAP for accounting.
According to this principle, accounts should be prepared in such a way that all the material information required by users of financial statements is clearly disclosed.
What is meant by going concern 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.
With reference to the concept of accounting only those transactions are recorded in accounts which can be expressed in terms of money. Justify either for or against.
The capital provided by the owner is a liability of the firm. Answer with reference to the concept of Accounting.
Explain the money measurement principle of accounting.
Explain The Dual Aspect Principle.
"The principle of full disclosure and principle of materiality are contradictory." Comment.
