what is functions of accounting principle
Answers
The fundamental objective of accounting is to keep complete records of the business transactions, so as to determine the financial performance and position of the enterprise and convey the information to the user groups such as shareholders, employees, creditors, suppliers, government and other groups...
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Answer:
Accounting principles are the general rules and guidelines that companies are required to follow when reporting all accounts and financial data.
Explanation:
The purpose of having - and following - accounting principles is to be able to communicate economic information in a language that is acceptable and understandable from one business to another. Companies that release their financial information to the public are required to follow these principles in preparation of their statements.
Accounting principles ensure that companies follow certain standards of recording how economic events should be recognised, recorded, and presented. External stakeholders (for example investors, banks, agencies etc.) rely on these principles to trust that a company is providing accurate and relevant information in their financial statements.