Question -
Answer -
Following points will be helpful to understand the above mentioned statement:
1. Following the accounting concepts and standards make accounting information easy to rely and compare
2. Many accounting concepts such as going concern, conservatism, dual aspect, accounting period etc. are considered while preparing accounts.
3. It ensures relevant financial data will be recorded.
4. Adhering to the concepts and standards ensures uniformity in accounting procedures.
5. Maintain consistency which leads to less errors.
6. Improves understandability and leads to better decision making.