INTERVIEW QUESTIONS FUNDAMENTALS OF ACCOUNTING ACCOUNTING STANDARDS DETAILS

Question: The Accounting Standards are mandatory for:
a) Companies
b) Partnership Concerns
c) Charitable Organizations
d) Sole Proprietorship

Answer: (a)
Description: The whole idea between the framework of Accounting Standards was to ensure transparency, consistency, comparability, adequacy and reliability of financial reporting. These elements are required where there is a divorce of ownership from management. This case is only with companies. Hence, the regulatory body thought it appropriate to make it mandatory only for the companies to follow AS and not over burden the small concerns with complex compliances.

(a)
Description: The whole idea between the framework of Accounting Standards was to ensure transparency, consistency, comparability, adequacy and reliability of financial reporting. These elements are required where there is a divorce of ownership from management. This case is only with companies. Hence, the regulatory body thought it appropriate to make it mandatory only for the companies to follow AS and not over burden the small concerns with complex compliances. Source: CoolInterview.com

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