Question

Which of the following is not an accounting convention?

• A. Materiality
• B. Consistency
• C. Conservatism
• D. Non-disclosure

Hint:

Accounting me disclosure important hota hai—financial information ko hide nahi kiya jata.

Answer 1

The Correct Option is D

Topic: Accounting Principles and Conventions
Step 1: Understanding the Question:
We need to identify the term that is NOT one of the standard practices (conventions) followed in financial accounting.
Step 2: Detailed Explanation:
There are four primary accounting conventions:
1. Consistency: Using the same accounting methods over different periods.
2. Full Disclosure: Revealing all significant financial information.
3. Conservatism (Prudence): Recognizing potential losses but not potential gains.
4. Materiality: Recording only those items that significantly impact financial status.
"Non-disclosure" is the opposite of the convention of "Full Disclosure."
Step 3: Final Answer:
Therefore, "Non-disclosure" is not an accounting convention.
Final Answer: Non-disclosure.