Question: The purpose of Accounting Standards is to: a) Harmonise accounting policies b) Eliminate the non comparability of financial statements c) Improve reliability of financial statements d) All of the above
Answer: (d) Description: The whole idea of accounting standards is centred around harmonization of accounting policies and practices followed by different business entities so that the diverse accounting practices can be standardized. They also aim at elimination of non- comparability and consequently increasing the reliability of financial statements. They even provide for standardized disclosure norms.
Question:
The purpose of Accounting Standards is to: a) Harmonise accounting policies b) Eliminate the non comparability of financial statements c) Improve reliability of financial statements d) All of the above Answer:
(d) Description: The whole idea of accounting standards is centred around harmonization of accounting policies and practices followed by different business entities so that the diverse accounting practices can be standardized. They also aim at elimination of non- comparability and consequently increasing the reliability of financial statements. They even provide for standardized disclosure norms. Source: CoolInterview.com
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