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One of the following is not the characteristic of Accounting Principles:
- a)Result Oriented
- b)Factual
- c)Practical
- d)Summarizing
Correct answer is option 'D'. Can you explain this answer?
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One of the following is not the characteristic of Accounting Principle...
Characteristics of Accounting Principles:
Accounting principles are guidelines and rules that companies must follow when preparing financial statements. These principles ensure consistency, accuracy, and transparency in financial reporting.
a) Result Oriented:
- Accounting principles are result-oriented, meaning that they focus on the outcomes of financial transactions rather than the processes involved. The primary goal of accounting is to provide useful information to stakeholders for decision-making.
b) Factual:
- Accounting principles are based on factual information and data. Financial statements must accurately reflect the financial position and performance of a company based on verifiable data and evidence.
c) Practical:
- Accounting principles are practical in nature, meaning they can be applied to real-world situations. These principles help companies manage their finances effectively and make informed decisions.
d) Summarizing:
- Summarizing is not a characteristic of accounting principles. While financial statements do summarize the financial activities of a company, accounting principles focus on the rules and guidelines that govern how these statements are prepared.
In conclusion, accounting principles play a crucial role in ensuring that financial reporting is accurate, consistent, and transparent. By following these principles, companies can maintain credibility with stakeholders and make informed business decisions.
Accounting principles are guidelines and rules that companies must follow when preparing financial statements. These principles ensure consistency, accuracy, and transparency in financial reporting.
a) Result Oriented:
- Accounting principles are result-oriented, meaning that they focus on the outcomes of financial transactions rather than the processes involved. The primary goal of accounting is to provide useful information to stakeholders for decision-making.
b) Factual:
- Accounting principles are based on factual information and data. Financial statements must accurately reflect the financial position and performance of a company based on verifiable data and evidence.
c) Practical:
- Accounting principles are practical in nature, meaning they can be applied to real-world situations. These principles help companies manage their finances effectively and make informed decisions.
d) Summarizing:
- Summarizing is not a characteristic of accounting principles. While financial statements do summarize the financial activities of a company, accounting principles focus on the rules and guidelines that govern how these statements are prepared.
In conclusion, accounting principles play a crucial role in ensuring that financial reporting is accurate, consistent, and transparent. By following these principles, companies can maintain credibility with stakeholders and make informed business decisions.
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Community Answer
One of the following is not the characteristic of Accounting Principle...
The correct answer is Summarizing.
Accounting principles are the common principles set up to maintain the similarity amidst the statement of accounts so that it conveys the same meaning to every individual using such statement of accounts and fulfil the reason of preparing accounts. In other words, it is a set of rules defining some concepts to be followed by the business to maintain the consistency of the records.
Essential features of accounting principles are:
- Usefulness: The Usefulness of accounting means it must useable to the users in their decision-making process. The information must be relevant to every user for their analysis process.
- Man-Made: Accounting principle made me man it is not made by nature. It made for universal acceptance so every organization will use the same method for their accounting.
- Flexible: The accounting principle is not hard to follow it is Flexible to follow. If the accountant feels the problem with the accounting principle so he can make an account in their own way. Accounting principles can be changed with time.
- Accepted by Everyone: The accounting principle is accepted by everyone from every organization. It uses the rule of accounting which is generally Accepted.
- Objectivity: A principle will be accepted based on facts and figures and there no personal bias. If there is personal bias then the users of information not believe in the financial statement of that company.
- Feasibility: Accounting principles must be easy to follow otherwise accountants will not the principles there is no compatibility.
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One of the following is not the characteristic of Accounting Principles:a)Result Orientedb)Factualc)Practicald)SummarizingCorrect answer is option 'D'. Can you explain this answer?
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One of the following is not the characteristic of Accounting Principles:a)Result Orientedb)Factualc)Practicald)SummarizingCorrect answer is option 'D'. Can you explain this answer? for UGC NET 2024 is part of UGC NET preparation. The Question and answers have been prepared according to the UGC NET exam syllabus. Information about One of the following is not the characteristic of Accounting Principles:a)Result Orientedb)Factualc)Practicald)SummarizingCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UGC NET 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for One of the following is not the characteristic of Accounting Principles:a)Result Orientedb)Factualc)Practicald)SummarizingCorrect answer is option 'D'. Can you explain this answer?.
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