TheWhich of the following is not the purpose served by accounting standards?a) To make the accounting very static and objective.b) To bring uniformity and consistency in Accounting Process.c) To see the performance and compare to other firms and years.d) To make the accounting information meaningful to both internal and external users.?

Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity

Open App

Commerce Exam > Commerce Questions > TheWhich of the following is not the purpose ...

Join the Discussion on the App

TheWhich of the following is not the purpose served by accounting standards?
a) To make the accounting very static and objective.
b) To bring uniformity and consistency in Accounting Process.
c) To see the performance and compare to other firms and years.
d) To make the accounting information meaningful to both internal and external users.?

Join for Free

Join for Free

Most Upvoted Answer

TheWhich of the following is not the purpose served by accounting stan...

Not the purpose served by accounting standards:

Static and Objective Accounting:
Accounting standards are not meant to make accounting very static and objective. In fact, accounting standards are designed to provide a framework that allows for flexibility and judgment in certain accounting treatments, while still ensuring comparability and reliability of financial information.

Uniformity and Consistency:
One of the primary purposes of accounting standards is to bring uniformity and consistency in the accounting process. By setting common rules and guidelines, accounting standards help ensure that financial statements are prepared in a consistent manner, making it easier for users to compare the financial performance of different entities.

Performance Comparison:
Accounting standards also facilitate the evaluation of an entity's performance and allow for comparison with other firms and across different time periods. By providing a common language for financial reporting, accounting standards enable stakeholders to make informed decisions based on reliable and comparable information.

Meaningful Information for Users:
Another key purpose of accounting standards is to make the accounting information meaningful to both internal and external users. By setting rules for the recognition, measurement, presentation, and disclosure of financial information, accounting standards ensure that users can rely on the financial statements to make decisions.

In conclusion, accounting standards serve various important purposes, including promoting uniformity and consistency, facilitating performance comparison, and providing meaningful information to users. However, their main goal is not to make accounting very static and objective, but rather to strike a balance between flexibility and reliability in financial reporting.

Answered by Pj Commerce Academy · View profile

Attention Commerce Students!

To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.

Chapter Notes for Commerce

Economics Class 12

Economics Class 11

NCERT Books & Solutions for Commerce

View all answers Start learning for free

Explore Courses for Commerce exam

Similar Commerce Doubts

Read the following hypothetical Case Study and answer the given questions:The financial statements, comprising the Trading A/c, Profit & Loss Account, Balance Sheet and Cash Flow Statement, that are prepared from the accounting information are published for the use by different entities, persons, etc. It is therefore essential that the published information is based on defined principles, concrete concepts and conventions. Accounting principles are the basic guidelines that provide standards for accounting practices and procedures to be followed, so that uniformity in accounting transactions is maintained. Accounting concepts are the assumptions on the basis of which financial statements are prepared. Accounting conventions emerge out of the accounting practices that have been followed by various organizations, over a period of time. The generally accepted accounting principles are generally accepted accounting standards. The concepts on the basis of which the financial statements are prepared and are agreed upon by the accountants, acting as a foundation for accounting are called accounting concepts. They are uniform set of rules for uniformity and understandability of accounting information. They are derived from experience. They are not static. It needs to satisfy relevance, objectivity and feasibility. The going concern concept assumes that the enterprise has neither any intention nor any necessity to close the business and will last for a long time. It enables the firms to enter into long term contracts. It enables for the charge or depreciation on assets which have fixed life. Due to this concept prepaid expenses are treated as assets. It helps in the classification of assets and liabilities. According to Consistency concept, the accounting principles and methods should be consistent. It should not vary every year. It enables to compare the financial stability of the business. There needs to be consistency in valuation of stock, depreciation and provisions, to enable better decision making by the management. It doesn’t mean that the accounting methods should not change, but the nature and effect and the reason for change should be stated.Which of the following is not the purpose served by Accounting standards?

View answer

Read the following hypothetical Case Study and answer the given questions:The financial statements, comprising the Trading A/c, Profit & Loss Account, Balance Sheet and Cash Flow Statement, that are prepared from the accounting information are published for the use by different entities, persons, etc. It is therefore essential that the published information is based on defined principles, concrete concepts and conventions. Accounting principles are the basic guidelines that provide standards for accounting practices and procedures to be followed, so that uniformity in accounting transactions is maintained. Accounting concepts are the assumptions on the basis of which financial statements are prepared. Accounting conventions emerge out of the accounting practices that have been followed by various organizations, over a period of time. The generally accepted accounting principles are generally accepted accounting standards. The concepts on the basis of which the financial statements are prepared and are agreed upon by the accountants, acting as a foundation for accounting are called accounting concepts. They are uniform set of rules for uniformity and understandability of accounting information. They are derived from experience. They are not static. It needs to satisfy relevance, objectivity and feasibility. The going concern concept assumes that the enterprise has neither any intention nor any necessity to close the business and will last for a long time. It enables the firms to enter into long term contracts. It enables for the charge or depreciation on assets which have fixed life. Due to this concept prepaid expenses are treated as assets. It helps in the classification of assets and liabilities. According to Consistency concept, the accounting principles and methods should be consistent. It should not vary every year. It enables to compare the financial stability of the business. There needs to be consistency in valuation of stock, depreciation and provisions, to enable better decision making by the management. It doesn’t mean that the accounting methods should not change, but the nature and effect and the reason for change should be stated.What are Accounting Principles also called?

View answer

Read the following hypothetical Case Study and answer the given questions:The financial statements, comprising the Trading A/c, Profit & Loss Account, Balance Sheet and Cash Flow Statement, that are prepared from the accounting information are published for the use by different entities, persons, etc. It is therefore essential that the published information is based on defined principles, concrete concepts and conventions. Accounting principles are the basic guidelines that provide standards for accounting practices and procedures to be followed, so that uniformity in accounting transactions is maintained. Accounting concepts are the assumptions on the basis of which financial statements are prepared. Accounting conventions emerge out of the accounting practices that have been followed by various organizations, over a period of time. The generally accepted accounting principles are generally accepted accounting standards. The concepts on the basis of which the financial statements are prepared and are agreed upon by the accountants, acting as a foundation for accounting are called accounting concepts. They are uniform set of rules for uniformity and understandability of accounting information. They are derived from experience. They are not static. It needs to satisfy relevance, objectivity and feasibility. The going concern concept assumes that the enterprise has neither any intention nor any necessity to close the business and will last for a long time. It enables the firms to enter into long term contracts. It enables for the charge or depreciation on assets which have fixed life. Due to this concept prepaid expenses are treated as assets. It helps in the classification of assets and liabilities. According to Consistency concept, the accounting principles and methods should be consistent. It should not vary every year. It enables to compare the financial stability of the business. There needs to be consistency in valuation of stock, depreciation and provisions, to enable better decision making by the management. It doesn’t mean that the accounting methods should not change, but the nature and effect and the reason for change should be stated.________ are the generally accepted rules and assumptions that assist accountants in the preparation of financial statements.

View answer

Read the following hypothetical Case Study and answer the given questions:The financial statements, comprising the Trading A/c, Profit & Loss Account, Balance Sheet and Cash Flow Statement, that are prepared from the accounting information are published for the use by different entities, persons, etc. It is therefore essential that the published information is based on defined principles, concrete concepts and conventions. Accounting principles are the basic guidelines that provide standards for accounting practices and procedures to be followed, so that uniformity in accounting transactions is maintained. Accounting concepts are the assumptions on the basis of which financial statements are prepared. Accounting conventions emerge out of the accounting practices that have been followed by various organizations, over a period of time. The generally accepted accounting principles are generally accepted accounting standards. The concepts on the basis of which the financial statements are prepared and are agreed upon by the accountants, acting as a foundation for accounting are called accounting concepts. They are uniform set of rules for uniformity and understandability of accounting information. They are derived from experience. They are not static. It needs to satisfy relevance, objectivity and feasibility. The going concern concept assumes that the enterprise has neither any intention nor any necessity to close the business and will last for a long time. It enables the firms to enter into long term contracts. It enables for the charge or depreciation on assets which have fixed life. Due to this concept prepaid expenses are treated as assets. It helps in the classification of assets and liabilities. According to Consistency concept, the accounting principles and methods should be consistent. It should not vary every year. It enables to compare the financial stability of the business. There needs to be consistency in valuation of stock, depreciation and provisions, to enable better decision making by the management. It doesn’t mean that the accounting methods should not change, but the nature and effect and the reason for change should be stated._____________ concept assumes that the enterprise has no intention of closing the business.

View answer

What does a smaller measure of dispersion indicate about a data set?

View answer

Top Courses for CommerceView all

Chapter Notes for Commerce

Economics Class 12

Economics Class 11

NCERT Books & Solutions for Commerce

Economics for CBSE Class 12 Board Examinations

Top Courses for Commerce

View all

TheWhich of the following is not the purpose served by accounting standards?a) To make the accounting very static and objective.b) To bring uniformity and consistency in Accounting Process.c) To see the performance and compare to other firms and years.d) To make the accounting information meaningful to both internal and external users.?

Share with a Friend

Answer this doubt

Question Description
TheWhich of the following is not the purpose served by accounting standards?a) To make the accounting very static and objective.b) To bring uniformity and consistency in Accounting Process.c) To see the performance and compare to other firms and years.d) To make the accounting information meaningful to both internal and external users.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about TheWhich of the following is not the purpose served by accounting standards?a) To make the accounting very static and objective.b) To bring uniformity and consistency in Accounting Process.c) To see the performance and compare to other firms and years.d) To make the accounting information meaningful to both internal and external users.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for TheWhich of the following is not the purpose served by accounting standards?a) To make the accounting very static and objective.b) To bring uniformity and consistency in Accounting Process.c) To see the performance and compare to other firms and years.d) To make the accounting information meaningful to both internal and external users.?.

Solutions for TheWhich of the following is not the purpose served by accounting standards?a) To make the accounting very static and objective.b) To bring uniformity and consistency in Accounting Process.c) To see the performance and compare to other firms and years.d) To make the accounting information meaningful to both internal and external users.? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.

Here you can find the meaning of TheWhich of the following is not the purpose served by accounting standards?a) To make the accounting very static and objective.b) To bring uniformity and consistency in Accounting Process.c) To see the performance and compare to other firms and years.d) To make the accounting information meaningful to both internal and external users.? defined & explained in the simplest way possible. Besides giving the explanation of TheWhich of the following is not the purpose served by accounting standards?a) To make the accounting very static and objective.b) To bring uniformity and consistency in Accounting Process.c) To see the performance and compare to other firms and years.d) To make the accounting information meaningful to both internal and external users.?, a detailed solution for TheWhich of the following is not the purpose served by accounting standards?a) To make the accounting very static and objective.b) To bring uniformity and consistency in Accounting Process.c) To see the performance and compare to other firms and years.d) To make the accounting information meaningful to both internal and external users.? has been provided alongside types of TheWhich of the following is not the purpose served by accounting standards?a) To make the accounting very static and objective.b) To bring uniformity and consistency in Accounting Process.c) To see the performance and compare to other firms and years.d) To make the accounting information meaningful to both internal and external users.? theory, EduRev gives you an ample number of questions to practice TheWhich of the following is not the purpose served by accounting standards?a) To make the accounting very static and objective.b) To bring uniformity and consistency in Accounting Process.c) To see the performance and compare to other firms and years.d) To make the accounting information meaningful to both internal and external users.? tests, examples and also practice Commerce tests.

Explore Courses for Commerce exam