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| 1. |
State whether the following statements are True or False with reason: (i) Accounting may be influenced by the personal judgment. (ii) Financial Statements are not comparable. (iii) Accounting Information must be presented in such a way thatonly accounting people understand it. (iv) Accounting Information must be reliable. |
| Answer» <html><body><p></p>Solution :(i) True: Accountant has to exercise his <a href="https://interviewquestions.tuteehub.com/tag/personal-590834" style="font-weight:bold;" target="_blank" title="Click to know more about PERSONAL">PERSONAL</a> judgment in respect of various items such as estimating useful life of an asset to charge depreciation. <br/> (<a href="https://interviewquestions.tuteehub.com/tag/ii-1036832" style="font-weight:bold;" target="_blank" title="Click to know more about II">II</a>) False: Financial Statements of two or more years are comparable or of different firms in the same industry if they adopt the same accounting policies year to year. <br/> (<a href="https://interviewquestions.tuteehub.com/tag/iii-497983" style="font-weight:bold;" target="_blank" title="Click to know more about III">III</a>) False: Accounting Information must be presented in a simple and logical manner that they are understood <a href="https://interviewquestions.tuteehub.com/tag/easily-964537" style="font-weight:bold;" target="_blank" title="Click to know more about EASILY">EASILY</a> by the users. <br/> (iv) True: Accounting Information must be reliable, i.e., the information must be factual and verifiable.</body></html> | |