ACCOUNTING CONCEPTS, PRINCIPLES AND CONVENTIONS
Channel: Education Direction
Date: 2022-02-18

#CAC #Accountancy #CA #Tax #Business #Auditing #Accounting 

Let us imagine a situation where you are a proprietor and you take copies of your books of account to five different accountants. You ask them to prepare the financial statements on the basis of the above records and to calculate the profits of the business for the year. After few days, they are ready with the financial statements and all  the  five accountants have calculated five different amounts of profits and that too with very wide variations among them. Guess in such a situation what impact would it leave on you about accounting profession. To avoid this, a generally accepted set of rules have been developed. This generally accepted set of rules provides unity of understanding and unity of approach in the practice of accounting and also in better preparation and presentation of the financial statements.