Basics 1 min read
Conservation or Prudence
It is a policy of playing safe. For future events, profits are not anticipated, but provisions for losses are provided…
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Basics 1 min read
Convention of Materiality
If the disclosure or non-disclosure of an information might influence the decision of the users of financial statements, then that…
Basics 1 min read
Convention of Disclosure
The Companies Act, 1956, prescribed a format in which financial statements must be prepared. Every company that fall under this…
Basics 1 min read
Convention of Consistency
To compare the results of different years, it is necessary that accounting rules, principles, conventions and accounting concepts for similar…
Basics 1 min read
Objective Evidence Concept
According to the Objective Evidence concept, every financial entry should be supported by some objective evidence. Purchase should be supported…
Basics 1 min read
Accrual Concept
As stated above in the matching concept, the revenue generated in the accounting period is considered and the expenditure related…
Basics 2 min read
Matching Concept
Matching concept is based on the accounting period concept. The expenditures of a firm for a particular accounting period are…
Basics 1 min read
Accounting Period Concept
The life of a business unit is indefinite as per the going concern concept. To determine the profit or loss…
Basics 1 min read
Dual Aspect Concept
There must be a double entry to complete any financial transaction, means debit should be always equal to credit. Hence,…
Basics 1 min read
Cost Concept
It is a very important concept based on the Going Concern Concept. We book the value of assets on the…
Basics 1 min read
Going Concern Concept
Our accounting is based on the assumption that a business unit is a going concern. We record all the financial…
Basics 1 min read
Money Measurement Concept
According to this concept, “we can book only those transactions in our accounting record which can be measured in monetary…
