Reasonable inaccuracies of accounting for an entity,short of its complete life span,are accepted.

Question

Quizplus · Accepted Answer

Reasonable inaccuracies in accounting are accepted as long as they do not significantly impact the overall financial statements of the entity. This is because it is almost impossible to capture every single transaction accurately, especially for a large entity, and minor discrepancies may arise. However, the accounting principles and standards require that these inaccuracies are minimized and disclosed appropriately.

Reasonable Inaccuracies of Accounting for an Entity,short of Its Complete