The correct answer is D. Accounting principles represent a consensuses at a particular time to the recording of accounting transactions.
Accounting principles are the basic guidelines that accountants follow when recording and reporting financial information. They are not laws, but they are widely accepted and used by businesses and other organizations. Accounting principles are developed by professional organizations, such as the Financial Accounting Standards Board (FASB), and they are based on the needs of users of financial information.
Accounting principles are important because they help to ensure that financial information is accurate and reliable. They also help to make financial information comparable across different companies and organizations.
Here is a brief explanation of each option:
- Option A: Accounting principles do not represent laws fixed by the respective governments. Governments may have laws that require businesses to keep financial records, but these laws do not dictate the specific accounting principles that businesses must follow.
- Option B: Accounting principles do not represent laws fixed by accounting experts. Accounting experts may develop accounting principles, but these principles are not laws.
- Option C: Accounting principles do not represent inviolable laws fixed by a legal board. Accounting principles are not laws, and they can be changed if they are no longer considered to be relevant or useful.
- Option D: Accounting principles represent a consensuses at a particular time to the recording of accounting transactions. This is the correct answer. Accounting principles are developed by a consensus of accounting experts, and they reflect the best practices for recording and reporting financial information.