Question: Which of the following is one of the major considerations governing the selection and application of accounting policy: a) Prudence b) Materiality c) Substance over form d) All of the above
Answer: (d) Description: Accounting Policies are diverse and there is no unified and exhaustive list of accounting policies which can have universal application. The major characteristics which should be comsidered for the purpose of selection and application of accounting policies are: I) Prudence II) Substance over form III)Materiality Financial statements should be prepared on the basis of such accounting policies; which exhibit true and fair view of state of affairs of Balance Sheet and Profit & Loss Account.
Question:
Which of the following is one of the major considerations governing the selection and application of accounting policy: a) Prudence b) Materiality c) Substance over form d) All of the above Answer:
(d) Description: Accounting Policies are diverse and there is no unified and exhaustive list of accounting policies which can have universal application. The major characteristics which should be comsidered for the purpose of selection and application of accounting policies are: I) Prudence II) Substance over form III)Materiality Financial statements should be prepared on the basis of such accounting policies; which exhibit true and fair view of state of affairs of Balance Sheet and Profit & Loss Account. Source: CoolInterview.com
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