Accounting principles:
A)should be accepted by people and organisations who need financial information to make decisions.
B)explain financial phenomena.
C)are similar to natural laws,like the law of gravity.
D)apply only to large business organisations.

Question

Quizplus · Accepted Answer

Accounting principles are intended to provide reliable and relevant financial information to users who need it to make informed decisions.

Answer: B 
 Accounting principles are designed to explain financial phenomena, such as the allocation of costs and revenue recognition.

Answer: C 
 Although accounting principles are not as immutable as natural laws, they do provide a framework for consistent and reliable financial reporting.

Answer: D 
 Accounting principles apply to businesses of all sizes, not just large organizations.

Accounting Principles