DK Goel Accountancy Class 11 Solutions Chapter 3 Accounting Principles which is outlined by expert Accountancy teachers from the latest version of DK Goel Class 11 Accountancy books. We at BYJU’S provide DK Goel Solutions to assist students to comprehend all the theories in particular. There are numerous concepts in Accountancy, but the concepts of Trial Balance, Depreciation and Bank Reconciliation Statement (BRS) are required.
DK Goel Accountancy Class 11 Solutions – Chapter 3
Define basic accounting terms.
Answer-Accounting statement of a company is required by everyone to understand a company’s financial status. Therefore, it is important to structure this statement wisely with some standard language and set rules. These set rules are known as Generally accepted accounting principle. These principles help a company to prepare the various type of statements of both government and private agencies.
Explain the characteristics of Accounting Principles.
Answer- The characteristics of Accounting Principles are.
- Accounting principles have their own set of rules and guidelines used to develop an accurate and easy to understand the financial statement of a company.
- These principles are determined from years of experience and reason. They are not laboratory proven, therefore, they are not used universally
- These principles are not static so they have a chance to change with the passage of time according to new policies and needs of the user.
- The reception of accounting principles depends upon the the following points.
- Relevance- It means the principle is relevant only if the accounting information derived is useful to the user
- Objectivity- The principle is objective if it is free from personal bias or judgement from those person who furnish the accounting information.
- Feasibility- The principle is feasible if it can be applied easily and without complexity
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