‘The accounting concepts and accounting standards are generally referred to as the essence of financial accounting’. Comment.

Explanation

Financial accounting cares with the preparation of the money statements and provides money data to numerous accounting users. it's performed in step with the fundamental accounting ideas like Business Entity, cash measure, Consistency, political orientation, etc.


These ideas permit varied alternatives to treat constant group action. as an example, there ar variety of ways on the market for scheming stock and depreciation, which may be followed by varied companies. This ends up in wrong interpretation of monetary results by external users because of the matter of inconsistency and incomparability of monetary results among completely different business entities. so as to mitigate inconsistency and incomparability and to bring uniformity in preparation of the money statements, accounting standards ar being issued in India Bharat Asian country Asian nation} by the Institute of comptroller of India. Accounting standards facilitate in removing ambiguities and inconsistencies.


Hence, accounting standards and accounting ideas are referred because the essence of monetary accounting.