______________ are written statements issued from time to time by institutions of accounting professionals, specifying uniform rules for drawing the financial statementsa)Accounting standardsb)Journal principlesc)Accounting conceptsd)Accounting principlesCorrect answer is option 'A'. Can you explain this answer?

Question

Answer

Accounting standards are guidelines providing the framework so that credible Financial statements can be produced.The objective of setting Accounting standards is to bring uniformity in accounting practices and to ensure transparency,consistency and comparability.Accounting statements are prepared keeping in view the business environment and laws of the country.It therefore naturally means that the guidelines change with change in business environment and laws.

Answer

A: Accounting standards

Accounting standards are written statements issued by institutions of accounting professionals, such as the International Accounting Standards Board (IASB) or the Financial Accounting Standards Board (FASB), specifying uniform rules for drawing up financial statements. These standards provide guidance on how to recognize, measure, present, and disclose transactions and events in financial statements, and are intended to improve the comparability and transparency of financial statements.

There are different types of accounting standards, including International Financial Reporting Standards (IFRS), which are global standards developed by the IASB and used by thousands of companies around the world, and Generally Accepted Accounting Principles (GAAP), which are standards developed by the FASB and used by publicly traded companies in the United States.

Accounting standards are important because they provide a common language and framework for financial reporting that is followed by companies around the world. They help to ensure the relevance and reliability of financial statements and enable stakeholders, such as investors and creditors, to make informed decisions about the financial position and performance of a business.

Other terms related to accounting include accounting concepts, which are fundamental principles that guide the preparation of financial statements, and accounting principles, which are the specific guidelines and rules that are followed when preparing financial statements. Journal principles refer to the rules and guidelines that are followed when recording transactions in a general ledger or journal.

Answer

Accounting Standards

Accounting standards, also known as accounting principles or generally accepted accounting principles (GAAP), are written statements issued by professional accounting organizations or regulatory bodies. These standards specify the rules and guidelines that should be followed when preparing and presenting financial statements.

Purpose of Accounting Standards

The main purpose of accounting standards is to ensure consistency, comparability, and transparency in financial reporting. They provide a framework for accountants and financial professionals to prepare financial statements that accurately represent the financial position, performance, and cash flows of an entity.

Uniformity in Financial Reporting

Accounting standards promote uniformity in financial reporting by providing a set of rules that companies must follow. These standards ensure that financial statements are prepared in a consistent manner, making it easier for users of financial information to compare the financial performance of different entities.

Guidance for Accountants

Accounting standards provide guidance for accountants and financial professionals in recognizing, measuring, and disclosing various financial transactions and events. They outline specific rules for recording revenues, expenses, assets, liabilities, and equity, as well as how to present this information in the financial statements.

Recognition and Measurement of Financial Elements

Accounting standards provide rules for recognizing and measuring various financial elements such as revenue, expenses, assets, liabilities, and equity. They specify criteria for determining when these elements should be recognized in the financial statements and how they should be measured.

Disclosure Requirements

Accounting standards also include disclosure requirements, which specify the information that should be presented in the financial statements and accompanying notes. These requirements ensure that users of financial information have access to all relevant and material information that may impact their decision-making.

Regulatory Compliance

Companies are legally required to comply with accounting standards when preparing their financial statements. Failure to comply with these standards may result in penalties, legal consequences, or damage to the company's reputation.

International Accounting Standards

In addition to national accounting standards, there are also international accounting standards, known as International Financial Reporting Standards (IFRS). These standards are issued by the International Accounting Standards Board (IASB) and are used by companies in many countries around the world.

Conclusion

Accounting standards play a crucial role in ensuring consistency and transparency in financial reporting. They provide a framework for accountants and financial professionals to follow when preparing financial statements, promoting comparability and reliability of financial information. Compliance with these standards is essential for regulatory compliance and maintaining the credibility of financial statements.

Answer

A

Answer

C

Answer

Accounting standard are statements of genaral gudelines, rules, regulation and act to handle particular problem IN which accounting Year Or operating Year u used

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