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CPT Section A Chapter 1 Unit 2   
CA. S.S.Prathap 
 
 
 
 
Page 2


CPT Section A Chapter 1 Unit 2   
CA. S.S.Prathap 
 
 
 
 
Accounting principles are a body of 
doctrines commonly associated with the 
theory and procedures of accounting. 
Page 3


CPT Section A Chapter 1 Unit 2   
CA. S.S.Prathap 
 
 
 
 
Accounting principles are a body of 
doctrines commonly associated with the 
theory and procedures of accounting. 
Accounting 
principles 
should be 
Based on real 
assumptions 
Followed 
consistently 
Reflect future 
predictions 
Informational 
to users 
Page 4


CPT Section A Chapter 1 Unit 2   
CA. S.S.Prathap 
 
 
 
 
Accounting principles are a body of 
doctrines commonly associated with the 
theory and procedures of accounting. 
Accounting 
principles 
should be 
Based on real 
assumptions 
Followed 
consistently 
Reflect future 
predictions 
Informational 
to users 
      
 
 Accounting Convention refer to the general 
agreement on the usage and practices in social or 
economic life. 
 
 GAAP - Generally Accepted Accounting Principles  
 
 
Page 5


CPT Section A Chapter 1 Unit 2   
CA. S.S.Prathap 
 
 
 
 
Accounting principles are a body of 
doctrines commonly associated with the 
theory and procedures of accounting. 
Accounting 
principles 
should be 
Based on real 
assumptions 
Followed 
consistently 
Reflect future 
predictions 
Informational 
to users 
      
 
 Accounting Convention refer to the general 
agreement on the usage and practices in social or 
economic life. 
 
 GAAP - Generally Accepted Accounting Principles  
 
 
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FAQs on PPT : Principles and Conventions - Accountancy Class 11 - Commerce

1. What are the principles of accounting?
Ans. The principles of accounting are the fundamental rules and guidelines that govern the preparation of financial statements. These principles include the principle of consistency, the principle of materiality, the principle of conservatism, the principle of relevance, the principle of reliability, and the principle of comparability.
2. What is the difference between principles and conventions in accounting?
Ans. Principles are fundamental rules and guidelines that govern the preparation of financial statements, while conventions are accounting practices that have been developed over time. Principles are generally considered to be more objective and fundamental, while conventions are more subjective and may vary between different organizations.
3. How do accounting principles and conventions affect financial statements?
Ans. Accounting principles and conventions affect financial statements by providing a framework for the preparation of financial statements. By following these principles and conventions, financial statements are more likely to be accurate, consistent, and reliable. However, the application of these principles and conventions may also affect the presentation of financial information, such as the valuation of assets and liabilities.
4. What is the principle of materiality in accounting?
Ans. The principle of materiality in accounting states that financial information that is significant or material should be disclosed in financial statements. Materiality is determined by the size, nature, and significance of the item or transaction in question. This principle ensures that financial statements provide meaningful information to users.
5. What is the principle of conservatism in accounting?
Ans. The principle of conservatism in accounting states that when there is uncertainty in accounting estimates or valuations, the most conservative approach should be taken. This means that potential losses or liabilities should be recognized as soon as possible, while potential gains should only be recognized when they are certain. This principle ensures that financial statements are not overstated and that users are aware of potential risks and uncertainties.
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