Question

What do you mean by accounting principles
Explain it characteristice​

Answer 1

Answer:

Accounting principles have been defined as the body of doctrine, commonly associated with the theory and procedure of accounting, serving as an explanation of current practices and as a guide L for the selection of conventions or procedures where alternatives exist.

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Answer 2

ANSWER :

❖ Meaning of Accounting Principles :-

• ★ Accounting Principles as general decision rules, derived from the objectives, the theoretical concept of accounting and practicability, which govern the development of accounting techniques. Accounting techniques means the specific rules derived from Accounting Principles which are applied while recording transactions.

• ★ The principles, which serve as the rules for accounting for financial transactions and preparing financial statements are known as Generally Accepted Accounting Principles.

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❖ Characteristics of Accounting Principles :-

• ➫ Common Use : Accounting Principles are developed for common use to ensure the uniformity and understablility in the financial statements.

• ➫ Flexibility in Application : Accounting Principles are not rigid. A considerable amount of flexibility is expected in the application of these principles.

• ➫ Application of Accounting Principles : Accounting Principles are applied in recording, classifying and summarising the financial transaction. These are also applied in measuring, communicating and interpreting in financial activities in a business language.

• ➫ Not Universally True : Like the principle of natural science, Accounting Principles are not universally true and cannot be verified by observation. The acceptance of Accounting Principles may vary from time to time and from country to country even from region to region in a country.

• ➫ Accounting Principles are Man-made : Accounting being a man-made system, Accounting Principles are also man-made and are the result of evolutionary process of accounting. It has to adjust itself to the changes in needs of the mankind.