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What is Accounting Principle?

10. What is Accounting Principle?

1. The value of that asset is recorded in the business's financial reports.
2. Rules and guidelines that companies must follow when reporting financial data.
3. The assumption is that an entity will remain in business for the foreseeable future.
4. None of the above.

Answer: B) Rules and guidelines that companies must follow when reporting financial data

Explanation:

A definitive objective of any arrangement of bookkeeping standards is to guarantee that an organization's fiscal summaries are finished, steady, and practically identical. This makes it more straightforward for financial backers to break down and extricate valuable data from the organization's budget reports, including pattern information throughout some stretch of time. It likewise works with the examination of monetary data across various organizations. Bookkeeping standards additionally assist with moderating bookkeeping misrepresentation by expanding straightforwardness and permitting warnings to be recognized.