Accounting Principle is general law or rule followed in the preparation of financial statements ........

Accountancy (Phase -I & II) Others

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Accounting Principle is general law or rule followed in the preparation of financial statements :

True

Partly True

False

None

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Explanation:

- Option 1: True

- Correct Answer

- Accounting principles are indeed general laws or rules followed in preparing financial statements. They ensure consistency, transparency, and comparability.

- Option 2: Partly True

- This would be appropriate if accounting principles were not universally needed, but they are crucial in standardizing financial information.

- Option 3: False

- This is incorrect because accounting principles are necessary for proper financial statement preparation. Without these, financial reporting would be chaotic.

- Option 4: None

- This implies no relationship, which is incorrect. Accounting principles are central to financial reporting.