Conceptual Framework For Financual Accounting

                                                                   Part-A
                                                             Brief Questions
                                                                  1st Part

1.What is Comparability?
Ans:Ability to compare accounting information of different companies because they use the same accounting principles.

2.What is Conceptual framework?
Ans:A coherent system of interrelated objectives and fundamentals that can lead to consistent standards.

3.What is Conservatism ?
Ans:The constraint of choosing an accounting method, when in doubt,that will least likely overstate assets and net income.

4.What is Consistency?
Ans:Use of the same accounting principles and methods from year to year within a company.

5.What is cost principles?
Ans:The principle that assets should be recorded at their historical cost.

6.What is Economic entity assumption ?
Ans:The assumption that the activities of an economic entity be kept separate from the activities of the owner and of all other entities.

7.What is Full disclosure principle?
Ans:The principle that circumstances and events that make a difference to financial statement users should be disclosed.

8.What is Generally accepted accounting principles (GAAP)?
Ans:A set of rules and practices , having substantial authoritative support, that are recognized as a general guide for financial reporting purposes.