Question

Accounting standard 1 is _____

a) Recommendatory b) Mandatory c) Optional d) No longer valid​

Answer 1

Answer:

Recommendatory is the right answer

Answer 2

• The correct answer for the given question is Mandatory (option b).
• The disclosure of accounting policies is referred to as Accounting Standard 1.

• It stipulates that an organization must disclose major accounting policies used in the preparation and presentation of its financial statements.
• Every business adheres to accounting regulations that are specific to its industry and business.
• As a result, an organization must reveal its main accounting practices in order to offer a true and fair picture of its financial situation.
• Hence, accounting standard is mandatory.