Mr Karan accountant at M/s Das and Das follows different methods of inventory valuation every year which of the following attributes of accounting information would be effective due to practice adopted by Mr Karan above?
Dear student
If mr karan accountant at Mr das and das follows different method of inventory valuation every year, then the service activity attribute of accounting would be effective due to practice adopted by mr. karan .Because accounting is a service activity which is designed to produce relevant information of an organisation to be used for decision making. if accountant used different method of valaution then decision making procedure will be difficult for internal as wella s for ecternal users.
As we go in depth of this concept:
There are three fundamental accounting assumption. One of the fundamental accounting assumption is consistency assumption. According to this assumption, accounting practice once selected and adopted, should be applied consistently year after year. the concepts helps in better understanding of accounting information and makes it comparable with that of previous year.
Regards
If mr karan accountant at Mr das and das follows different method of inventory valuation every year, then the service activity attribute of accounting would be effective due to practice adopted by mr. karan .Because accounting is a service activity which is designed to produce relevant information of an organisation to be used for decision making. if accountant used different method of valaution then decision making procedure will be difficult for internal as wella s for ecternal users.
As we go in depth of this concept:
There are three fundamental accounting assumption. One of the fundamental accounting assumption is consistency assumption. According to this assumption, accounting practice once selected and adopted, should be applied consistently year after year. the concepts helps in better understanding of accounting information and makes it comparable with that of previous year.
Regards