Accounting for IGCSE & O level - Advanced Principles (Section 6 - No. 3)
What does a business's accounting policy define?
The specific methods and procedures used to prepare financial statements.
The tax liability of the company.
The market value of assets.
The going concern value of the company.
Explication
Accounting policies are the specific principles, bases, conventions, rules, and practices applied by a business in preparing and presenting financial statements.