Define Accounting Concept. - SS1 Accounting Past Questions and Answers - page 1
What is the purpose of the accounting concept?
To guide businesses in their decision making
To record financial transactions in a consistent manner
To comply with legal and regulatory requirements
All of the above
Why is the accounting concept important for businesses?
To maintain accurate financial records for taxation and audit purposes
To ensure financial information is reliable, relevant, and comparable
To make informed decisions based on financial information
All of the above
What does the accounting concept provide to businesses?
A framework for preparing and presenting financial information
A Framework for decision making
A framework for compliance with legal requirements
None of the above
What does the accounting concept ensure?
Financial information is accurate, consistent, and transparent
Financial information is biased and misleading
Financial information is irrelevant to decision making
Financial information is complex and difficult to understand
What is the meaning of the accounting concept?
The accounting concept refers to a set of principles and guidelines that guide the preparation, presentation, and interpretation of financial information.