NCERT · Class 11 · Accountancy · Theory Base of AccountingWhat is the primary objective of accounting standards?
Step-by-Step Solution
Accounting standards aim to harmonize accounting policies and practices globally or nationally, ensuring transparency, reliability, and comparability of financial statements.
Detailed Options Breakdown
Option : To increase tax liability
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Theory Base of Accounting.
Option 1: To ensure uniformity in accounting policies and financial reporting (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: To hide company losses
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Theory Base of Accounting.
Option 3: To reduce employee wages
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Theory Base of Accounting.
💡 Study Guide: This question tests core syllabus concepts from Theory Base of Accounting. For formulas, key summaries, and mock exam reference guides, read the full Theory Base of Accounting Revision Notes.