Question-08: What is the Time period assumption?Īnswer: The assumption that accountants are able to break a company’s economic life into artificial time periods. Question-07: What’s the historical cost principle?Īnswer: An accounting principle that states that assets should be reported at their cost by businesses. Question-06: What is the fair value principle?Īnswer: The accounting principle that assets and liabilities (the price received to sell an asset or settle a liability) should be stated at fair value Question-05: What is the Economic Entity assumption?Īnswer: The assumption requires the separation of the activities of the entity and all the other economic entities from the activities of its owner. Question-04: What is the International Financial Reporting Standards (IFRS)?Īnswer: International standards for accounting set by the International Accounting Standards Board (IASB) Question-03: What are the generally accepted accounting principles (GAAP)?Īnswer: General principles that suggest how economic events should be reported. Question-02: What is the accounting Principle?Īnswer: The accounting principle refers to a number of basic or self-evident truths that are universally accepted in accounting. Accounting Constraints Short Questions and Answers-Accounting PrinciplesĪnswer: The rules or regulations that are followed in order to carry out the work properly are called principles.It will also increase your knowledge of accounting and help you perform well on any competitive exam.
Today we’ll learn “35 Short Questions and Answers-Accounting Principles.” If you read it with a proper concentration from top to bottom, you’ll get a basic idea of the accounts Principles. Accounting principles are followed in the preparation of the statement of comprehensive income and the statement of financial position. Accounting principles are of immense importance in accounting.
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