Advertisements
Advertisements
Question
Explain the principle of industry practice.
Solution
Different accounting principles are 'generally' followed and it is not binding to follow some particular accounting principle. The special features of an industry may require departure from the accounting guidelines. There may be a long-standing accounting practice in an industry. Then all units in that industry must follow that practice. This will make the comparison of results of these units easier. Such a practice will result in the uniformity of procedures and will be consistent with the accounting principles.
APPEARS IN
RELATED QUESTIONS
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.
