Financial statements are the outcome of recorded facts, accounting concepts and conventions used and personal judgement made in different situations by the _________.

owners

No worries! We‘ve got your back. Try BYJU‘S free classes today!

accountants

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

managers

No worries! We‘ve got your back. Try BYJU‘S free classes today!

dierctors

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B accountants
Financial statements are the outcome of recorded facts, accounting concepts and conventions used and personal judgements made in different situations by the accountants. Hence, bias may be observed in the results, and the financial position depicted in financial statements may not be realistic.

Suggest Corrections

Similar questions

`Financial statements reflect a combination of recorded facts, accounting conventions and personal judgments’ discuss.

List-I(Accounting concept)	List-II(Principle involved)
I. Consistency	(a) Losses are anticipated and accounted for in advance but profits are not accounted for until realised
II. Comparability	(b) All the relevant financial information should be summarised and presented in the accounting statements
III. Conservatism	(c) According procedures in an entity should be followed uniformly from period to period
IV. Disclosure	(d) Accounting statement of different periods of an entity and those of different entities of a period should be based on the same accounting principles and procedures
	(e) Personal Judgement of accountants should not influence accounting measurements

Accounting records business transactions and events which are of a financial nature.Is this a limitation of accounting?

Join BYJU'S Learning Program