Principles of accounting
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Principles of Accounting outlines fundamental concepts and conventions that guide accountants. The concepts include separate entity, going concern, money measurement, cost, and dual aspect. Conventions are customs that direct accountants, such as conservatism, full disclosure, consistency, and materiality. Together, the concepts and conventions provide a framework for recording transactions and preparing financial statements.
Principles of accounting
- 2. These are those rules of action or conduct which are adapted by the accountants universally while recording accounting transactions.They are a body of doctrines commonly associated with the theory and procedures of accounting, serving as an explanation of current practices and as a guide for selection of conventions or procedures where alternatives exist.Definition
- 4. Includes those basic assumptions or conditions upon which the science of accounting is based.Separate Entity ConceptGoing Concern ConceptMoney Measurement ConceptCost ConceptDual Aspect ConceptAccounting Concepts
- 5. Accounting Period ConceptPeriodic Matching of Cost and Revenue ConceptRealization Concept
- 6. Includes those customs or traditions which guide the accountant while preparing the accounting statements.Convention of ConservatismConvention of Full DisclosureConvention of ConsistencyConvention of MaterialityAccounting Conventions