Answer to Question #216398 in Accounting for Naafu Peter

Question

1). Examine the role of accounting concepts in the preparation of financial statements. Do you find any of the accounting concepts conflicting
with each other? Give examples.

2). Discuss briefly the basic concepts and conventions of accounting?

3). Why should accounting practices be standardised? Explain.

Answer 1

1)Accounting ideas and norms are important because they serve as a guidance while preparing financial statements. It will cover important topics such as the statement of the problems, the objective of the investigation, the scope of hypothesis formulation, the theoretical framework, and the study's limitations.

No, they support each other

2)There are four main conventions in practice in accounting: conservatism; consistency; full disclosure; and materiality.

3)Accounting standards ensure the financial statements from multiple companies are comparable.