Accounting Period Concept
Also known as Time Period where business operation can be divided into specific intent of time such as a month, a quarter or a yr(accounting period). utmost accounts be lively at the end of the accounting period ie one year. Internal accounts can be prepared monthly, quarterly or half yearly.
Requires totally revenues and expenses to be taken into account for the period in which they are earned and incurred when determining the profit/(loss) of the business. The net profit/(loss) is the exit among the revenue EARNED and the expenses INCURRED and not the difference between the revenue RECEIVED and expenses PAID.
Business Entity Concept
Also known as Accounting Entity convention which states that the business is an entity or body start from its owner. Therefore business records should be separated and distinct from in-person records of business owner.
According to this convention, accounting practices should remain unvaried from one period to another. For example, if depreciation is charged on inflexible assets according to a particular method, it should be done year after year. This is necessary for purpose of comparison.
Dual Aspect Concept
take over admission system. For every debit, there is a credit entry of an equal amount.
Full Disclosure Concept
Financial statements should provide comfortable or relevant information to influence users decision making.
issue Concern Concept
The business will follow accounting concepts and methods on the assumption that business will continue its operation to the foreseeable future or for an indefinite period of time.
Historical represent Concept
Business should report its activities or economic events at their tangible cost. For example, fixed assets are recorded at their cost in accounts except for land which can be revalued due to application.
The accountant should attach importance to material details and...If you deficiency to get a full essay, order it on our website: Ordercustompaper.com
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