what is accounting concept? explian in brief?
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Answer Posted / naveen
1. Money measurement concept: Every accounting transaction
is major in terms of money.
2. Dual entity concept: As per this concept an accountant
assume that business & businessman are two different entities.
3. Going-concern concept: According to this assumption while
doing the accounting it is assumed that business will
continue for fairly longer period of time.
4. Cost concept: This concept is applicable only for fixed
assets accounting purpose it states that while computing the
cost of fixed assets all the incidental expenditure for the
acquisition of the assets should be added in cost fixed assets.
5. Dual-aspect concept: This is the fundamental accounting
assumption which state that every transaction has too folds
effect positive or negative in accounts it is dr. & cr.
6. Periodicity concept: Every accounting is divided in
smaller periods as per this concept.
7. Cost attach concept: While computing the revenue earned
by the organization all the incidental expenditures required
to earn such a revenue should be accounted for as per this
concept .
8. Accrual concept: As per l payment or receipts is irrelevant.
9. Legal aspect concept: When there is a conflict between
laws & accounting account should follow law procedthis
concept revenue or expenditure should be accounted for only
on the basis of the certainty of that revenue receives or
expenditure paid actuaures first.
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