Answer / shailendra kushwaha

1.accounting period concept
2.Dual aspect concept
3.money measurement concept
4.Realisation concept
5.Seperate entity concept
6.Cost concept
7.Going concern concept
8.Accounting equivalance concept
9.Verifiable objective evidence concept
10.Capital concept
11.Matching of cost and Revenue concept
12.Accrual concept

Answer / osolarin daniel olaoluwa

this are rules guiding accountants in building accounts

Answer / sanjay mulia

Accounting concepts define the assumptions on the basic of
which financial statements of a business entity are
prepared. Certain concepts are perceived,assumed and
accepted in accounting to provide a unifying structure and
internal logic to accounting process. The word concept means
idea or notion,which has universal application. Financial
transactions are interpreted in the light of the
concepts,which govern accounting methods.Concepts are those
basic assumptions and conditions, which form the basic upon
which the accountancy has been laid. Unlike physical
science, accounting concepts are only results of broad
consensus. These accounting concepts lay the foundation on
the basic of which the accounting principles are formulated.

Accounting conventions emerge out of accounting
practices, commonly known as accounting principles, adopted
by various organization over a period of time. These
conventions are derived by usage and practice. The
accountancy bodies of the world may change any of the
convention to improve the quality of accounting information.
Accounting conventions need not have universal application.

The following are the widely accepted accounting concepts:-
1.Entity concept
2.Money measurement concept
3.Periodicity concept
4.Accrual concept
5.Matching concept
6.Going concern concept
7.Cost concept
8.Realisation concept
9.Dual aspect concept
10.Conservatism
11.Consistency
12.Materiality.

Answer / vitus chisom jesofa

concept are to be written in accounting standard
conventions are not, they are assumed
examples of concepts are dual concept, going concept,
business entity e.t.c.
examples of convantions are double entry, accounting
equations (asset-liability = liability)

Answer / usaid

n drawing up accounting statements, whether they are
external "financial accounts" or internally-
focused "management accounts", a clear objective has to be
that the accounts fairly reflect the true "substance" of
the business and the results of its operation.

The theory of accounting has, therefore, developed the
concept of a "true and fair view". The true and fair view
is applied in ensuring and assessing whether accounts do
indeed portray accurately the business' activities.

To support the application of the "true and fair view",
accounting has adopted certain concepts and conventions
which help to ensure that accounting information is
presented accurately and consistently.

Accounting Conventions

The most commonly encountered convention is the "historical
cost convention". This requires transactions to be recorded
at the price ruling at the time, and for assets to be
valued at their original cost.

Under the "historical cost convention", therefore, no
account is taken of changing prices in the economy.

The other conventions you will encounter in a set of
accounts can be summarised as follows:

Monetary measurement:

Accountants do not account for items unless they can be
quantified in monetary terms. Items that are not accounted
for (unless someone is prepared to pay something for them)
include things like workforce skill, morale, market
leadership, brand recognition, quality of management etc.

Separate Entity This convention seeks to ensure that
private transactions and matters relating to the owners of
a business are segregated from transactions that relate to
the business.

Realisation With this convention, accounts recognise
transactions (and any profits arising from them) at the
point of sale or transfer of legal ownership - rather than
just when cash actually changes hands. For example, a
company that makes a sale to a customer can recognise that
sale when the transaction is legal - at the point of
contract. The actual payment due from the customer may not
arise until several weeks (or months) later - if the
customer has been granted some credit terms.

Materiality An important convention. As we can see from the
application of accounting standards and accounting
policies, the preparation of accounts involves a high
degree of judgement. Where decisions are required about the
appropriateness of a particular accounting judgement,
the "materiality" convention suggests that this should only
be an issue if the judgement is "significant" or "material"
to a user of the accounts. The concept of "materiality" is
an important issue for auditors of financial accounts.

Accounting Concepts

Four important accounting concepts underpin the preparation
of any set of accounts:

Going Concern Accountants assume, unless there is evidence
to the contrary, that a company is not going broke. This
has important implications for the valuation of assets and
liabilities.
Consistency Transactions and valuation methods are treated
the same way from year to year, or period to period. Users
of accounts can, therefore, make more meaningful
comparisons of financial performance from year to year.
Where accounting policies are changed, companies are
required to disclose this fact and explain the impact of
any change.
Prudence Profits are not recognised until a sale has been
completed. In addition, a cautious view is taken for future
problems and costs of the business (the are "provided for"
in the accounts" as soon as their is a reasonable chance
that such costs will be incurred in the future.
Matching (or "Accruals") Income should be
properly "matched" with the expenses of a given accounting
period.

Key Characteristics of Accounting Information

There is general agreement that, before it can be regarded
as useful in satisfying the needs of various user groups,
accounting information should satisfy the following
criteria:

Criteria What it means for the preparation of accounting
information
Understandability :
This implies the expression, with clarity, of accounting
information in such a way that it will be understandable to
users - who are generally assumed to have a reasonable
knowledge of business and economic activities
Relevance :
This implies that, to be useful, accounting information
must assist a user to form, confirm or maybe revise a view -
usually in the context of making a decision (e.g. should I
invest, should I lend money to this business? Should I work
for this business?)
Consistency:
This implies consistent treatment of similar items and
application of accounting policies
Comparability:
This implies the ability for users to be able to compare
similar companies in the same industry group and to make
comparisons of performance over time. Much of the work that
goes into setting accounting standards is based around the
need for comparability.
Reliability:
This implies that the accounting information that is
presented is truthful, accurate, complete (nothing
significant missed out) and capable of being verified (e.g.
by a potential investor).

Answer / muhammed l hydara

In preparing accounts and financial statements, accountants
follow certain fundamental assumptions, rules, principles or
conventions. These rules or principles are more commonly
known as accounting concepts. and they include the following:

1. business entity concept
2. money measurement concept
3. prudence concept
4. accrual concept
5. matching concept
7. realization concept
8. consistency concept
10.Business Entity Concept
11.periodicity concept
12.materiality concept
13.Dual aspect concept
14.separate legal entity concept
15.historical cost convention
16.substance over form

Answer / samuel

four conventions in accounting and explain

Answer / deepika gulati

accounting concept are accurate 8 and covention are 5

Answer / sugandha gupta

The concepts and conventions of accounting are :
1. Conservatism
2. Full Disclosure
3. Consistency
4. Materiality

Answer / sunita

Accounting Conventions

The most commonly encountered convention is the "historical
cost convention". This requires transactions to be recorded
at the price ruling at the time, and for assets to be valued
at their original cost.

Under the "historical cost convention", therefore, no
account is taken of changing prices in the economy.

The other conventions you will encounter in a set of
accounts can be summarised as follows:
Monetary measurement

Accountants do not account for items unless they can be
quantified in monetary terms. Items that are not accounted
for (unless someone is prepared to pay something for them)
include things like workforce skill, morale, market
leadership, brand recognition, quality of management etc.
Separate Entity

This convention seeks to ensure that private transactions
and matters relating to the owners of a business are
segregated from transactions that relate to the business.
Realisation

With this convention, accounts recognise transactions (and
any profits arising from them) at the point of sale or
transfer of legal ownership - rather than just when cash
actually changes hands. For example, a company that makes a
sale to a customer can recognise that sale when the
transaction is legal - at the point of contract. The actual
payment due from the customer may not arise until several
weeks (or months) later - if the customer has been granted
some credit terms.
Materiality An important convention. As we can see from the
application of accounting standards and accounting policies,
the preparation of accounts involves a high degree of
judgement. Where decisions are required about the
appropriateness of a particular accounting judgement, the
"materiality" convention suggests that this should only be
an issue if the judgement is "significant" or "material" to
a user of the accounts. The concept of "materiality" is an
important issue for auditors of financial accounts.

Accounting Concepts

Four important accounting concepts underpin the preparation
of any set of accounts:
Going Concern Accountants assume, unless there is evidence
to the contrary, that a company is not going broke. This has
important implications for the valuation of assets and
liabilities.
Consistency Transactions and valuation methods are treated
the same way from year to year, or period to period. Users
of accounts can, therefore, make more meaningful comparisons
of financial performance from year to year. Where accounting
policies are changed, companies are required to disclose
this fact and explain the impact of any change.
Prudence Profits are not recognised until a sale has been
completed. In addition, a cautious view is taken for future
problems and costs of the business (the are "provided for"
in the accounts" as soon as their is a reasonable chance
that such costs will be incurred in the future.
Matching (or "Accruals") Income should be properly
"matched" with the expenses of a given accounting period.

Key Characteristics of Accounting Information

There is general agreement that, before it can be regarded
as useful in satisfying the needs of various user groups,
accounting information should satisfy the following criteria:

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