Dual Aspect Concept in Accounting
The dual Aspect concept states that every financial transaction has twofold effects. These two aspects always have equal effects.
Accountancy
Prudence or Conservatism Concept
The concept of Prudence states that “One shall not anticipate profit but shall always provide for all prospective losses”. This makes sure that the assets and incomes aren’t overstated,
Revenue Recognition Concept
According to the concept of revenue recognition, revenue is to be recognized only when rewards and benefits associated with the items sold and services provided are transferred
Money Measurement Concept
According to the money measurement concept, only the transactions that are measurable in money terms are to be recorded in the books of accounts of the business.
Business Entity Concept
According to the business entity concept, a business may be a separate entity from its owners. This basically means personal transactions of the owners of the business are to be treated separately from the business transactions.
Accrual Concept in Accounting
According to the accrual concept, a business transaction is recorded as and when it occurs and not when payment for the same is received/made. The sale from any transaction is recorded under this concept
Concept of Consistency in Accounting
the concept of consistency doesn’t mean the business cannot change to a far better method or presentation, the methods can be changed according to the requirements of the business
What is Going Concern?
Going concern is that the basic underlying assumption of accounting. Financial statements are prepared to assume that the business may be a going concern
3 Fundamental Accounting Assumptions
After browsing this lesson, you shall be ready to understand the subsequent Fundamental Accounting Assumptions: Going Concern, Consistency, Accrual
What are Accounting Conventions?
Accounting conventions are the customs and traditions that guide an accountant while preparing financial statements. These are those….