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Theory Base of Accounting — Account STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceAccountTheory Base of Accounting3 Marks
Question
Define Accounting Standards. Explain its any two objectives.
✓

Answer

Accounting Standards: Accounting Standards are a set of guidelines, i.e., Generally Accepted Account ng Principles, that are followed for preparation and presentation of Financial Statements. They are accounting rules and procedures relating to measurement, recognition, treatment, presentation and disclosure of accounting transactions in the financial statements issued by the Council of the Institute of Chartered Accountants of India.
Objectives of Accounting Standards are:
  1. Minimise the diverse accounting policies and practices with the aim to eliminate them to the extent possible.
  2. Promote better understanding of financial statements.

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