CA Foundation Exam > CA Foundation Questions > A Change in accounting Policy is justifieda)T...
Start Learning for Free
A Change in accounting Policy is justified
- a)To comply with accounting standard.
- b)To ensure more appropriate presentation of the financial statement of the enterprise
- c)To comply with law.
- d)All of the above.
Correct answer is option 'D'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
A Change in accounting Policy is justifieda)To comply with accounting ...
Explanation:
Compliance with Accounting Standard:
- Changes in accounting policy may be justified to comply with the requirements of accounting standards issued by the relevant accounting standard-setting bodies.
- Accounting standards are established to ensure consistency, comparability, and transparency in financial reporting. Therefore, it is crucial for enterprises to adhere to these standards to provide reliable and relevant information to stakeholders.
Appropriate Presentation of Financial Statements:
- A change in accounting policy may be necessary to ensure a more appropriate presentation of the financial statements of the enterprise.
- The presentation of financial statements should reflect the true and fair view of the financial position, performance, and cash flows of the entity. Therefore, if the existing accounting policy does not result in a faithful representation of the financial information, a change may be warranted.
Compliance with Law:
- In some cases, changes in accounting policy may be required to comply with the legal requirements imposed by regulatory authorities.
- Legal regulations may dictate specific accounting treatments for certain transactions or events, and failure to comply with these laws could result in penalties or legal consequences.
Conclusion:
In conclusion, a change in accounting policy may be justified for various reasons, including compliance with accounting standards, ensuring appropriate presentation of financial statements, and adherence to legal requirements. It is essential for enterprises to assess the impact of such changes on their financial reporting and to communicate them transparently to stakeholders.
Compliance with Accounting Standard:
- Changes in accounting policy may be justified to comply with the requirements of accounting standards issued by the relevant accounting standard-setting bodies.
- Accounting standards are established to ensure consistency, comparability, and transparency in financial reporting. Therefore, it is crucial for enterprises to adhere to these standards to provide reliable and relevant information to stakeholders.
Appropriate Presentation of Financial Statements:
- A change in accounting policy may be necessary to ensure a more appropriate presentation of the financial statements of the enterprise.
- The presentation of financial statements should reflect the true and fair view of the financial position, performance, and cash flows of the entity. Therefore, if the existing accounting policy does not result in a faithful representation of the financial information, a change may be warranted.
Compliance with Law:
- In some cases, changes in accounting policy may be required to comply with the legal requirements imposed by regulatory authorities.
- Legal regulations may dictate specific accounting treatments for certain transactions or events, and failure to comply with these laws could result in penalties or legal consequences.
Conclusion:
In conclusion, a change in accounting policy may be justified for various reasons, including compliance with accounting standards, ensuring appropriate presentation of financial statements, and adherence to legal requirements. It is essential for enterprises to assess the impact of such changes on their financial reporting and to communicate them transparently to stakeholders.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
A Change in accounting Policy is justifieda)To comply with accounting standard.b)To ensure more appropriate presentation of the financial statement of the enterprisec)To comply with law.d)All of the above.Correct answer is option 'D'. Can you explain this answer?
Question Description
A Change in accounting Policy is justifieda)To comply with accounting standard.b)To ensure more appropriate presentation of the financial statement of the enterprisec)To comply with law.d)All of the above.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A Change in accounting Policy is justifieda)To comply with accounting standard.b)To ensure more appropriate presentation of the financial statement of the enterprisec)To comply with law.d)All of the above.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Change in accounting Policy is justifieda)To comply with accounting standard.b)To ensure more appropriate presentation of the financial statement of the enterprisec)To comply with law.d)All of the above.Correct answer is option 'D'. Can you explain this answer?.
A Change in accounting Policy is justifieda)To comply with accounting standard.b)To ensure more appropriate presentation of the financial statement of the enterprisec)To comply with law.d)All of the above.Correct answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A Change in accounting Policy is justifieda)To comply with accounting standard.b)To ensure more appropriate presentation of the financial statement of the enterprisec)To comply with law.d)All of the above.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Change in accounting Policy is justifieda)To comply with accounting standard.b)To ensure more appropriate presentation of the financial statement of the enterprisec)To comply with law.d)All of the above.Correct answer is option 'D'. Can you explain this answer?.
Solutions for A Change in accounting Policy is justifieda)To comply with accounting standard.b)To ensure more appropriate presentation of the financial statement of the enterprisec)To comply with law.d)All of the above.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A Change in accounting Policy is justifieda)To comply with accounting standard.b)To ensure more appropriate presentation of the financial statement of the enterprisec)To comply with law.d)All of the above.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A Change in accounting Policy is justifieda)To comply with accounting standard.b)To ensure more appropriate presentation of the financial statement of the enterprisec)To comply with law.d)All of the above.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for A Change in accounting Policy is justifieda)To comply with accounting standard.b)To ensure more appropriate presentation of the financial statement of the enterprisec)To comply with law.d)All of the above.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of A Change in accounting Policy is justifieda)To comply with accounting standard.b)To ensure more appropriate presentation of the financial statement of the enterprisec)To comply with law.d)All of the above.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A Change in accounting Policy is justifieda)To comply with accounting standard.b)To ensure more appropriate presentation of the financial statement of the enterprisec)To comply with law.d)All of the above.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup