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A tailled trial balance means that the books of accounts have been prepared as per accepted principles. True or false?
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Trial Balance and Accepted Principles of Accounting
Accepted Principles of Accounting
Tailed Trial Balance and Accepted Principles of Accounting
A trial balance is a statement that lists all the ledger accounts along with their debit and credit balances to check whether the total debits equal the total credits. A trial balance is prepared at the end of an accounting period to ensure the accuracy of the books of accounts. However, a trial balance alone does not indicate whether the books of accounts have been prepared as per accepted principles of accounting.
Accepted Principles of Accounting
Accepted principles of accounting refer to the guidelines and rules that are followed by accountants to maintain the accuracy, consistency, and reliability of financial statements. These principles are widely accepted across the world and include the following:
- Accrual Basis of Accounting
- Consistency Principle
- Matching Principle
- Materiality Principle
- Prudence or Conservatism Principle
- Entity Concept
- Going Concern Concept
- Cost Concept
- Full Disclosure Principle
Tailed Trial Balance and Accepted Principles of Accounting
A tailled trial balance is a trial balance that includes the closing balances of all the ledger accounts. A tailed trial balance provides more information than an ordinary trial balance and can help in identifying errors and omissions in the books of accounts. However, a tailed trial balance alone does not indicate whether the books of accounts have been prepared as per accepted principles of accounting.
Therefore, to ensure that the books of accounts have been prepared as per accepted principles of accounting, the following steps need to be taken:
- Ensure that all transactions are recorded accurately and completely in the books of accounts.
- Follow the accepted principles of accounting while preparing financial statements.
- Ensure that the books of accounts are audited by a qualified and independent auditor.
- Ensure that the financial statements are prepared in accordance with the applicable accounting standards and regulations.
- Ensure that the financial statements provide a true and fair view of the financial position and performance of the business.
In conclusion, a tailed trial balance provides more information than an ordinary trial balance but does not indicate whether the books of accounts have been prepared as per accepted principles of accounting. To ensure that the books of accounts have been prepared as per accepted principles of accounting, the above-mentioned steps need to be taken.
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A tailled trial balance means that the books of accounts have been prepared as per accepted principles. True or false?
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A tailled trial balance means that the books of accounts have been prepared as per accepted principles. True or false? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A tailled trial balance means that the books of accounts have been prepared as per accepted principles. True or false? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A tailled trial balance means that the books of accounts have been prepared as per accepted principles. True or false?.
A tailled trial balance means that the books of accounts have been prepared as per accepted principles. True or false? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A tailled trial balance means that the books of accounts have been prepared as per accepted principles. True or false? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A tailled trial balance means that the books of accounts have been prepared as per accepted principles. True or false?.
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