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Question

Customs and traditions which guide the accounts to prepare accounting statements are called ______________.

A
conventions
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B
principles
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C
concepts
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D
procedure
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Solution

The correct option is A conventions
Conventions are the guidelines that arise from the practical application of accounting principles. It is not legally binding practice rather, it is a generally accepted convention based on customs and designed to help accountants overcome practical problems that arise out of the preparation of financial statements.

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