Question

necessity of accounting principles

Answer 1

In practice, they serve a very important function. Generally acceptedaccounting principles (GAAP) are a common set of accounting rules and standards that dictate how financial statements are prepared.

Answer 2

Q.Necessity of accounting principles

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A.The business today is large in size and complex in nature. There are various groups who are interested in performance of the business such as shareholders, debenture holders, etc. Accounting, in this way, is required to report and present the facts of the business in such a way, which can meet the varied requirements of different groups. Therfore,there is a great importance and need for accounting principles or GAAP.

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