Basics
Convention of Disclosure
The Companies Act, 1956, prescribed a format in which financial statements must be prepared. Every company that fall…
August 16, 2021 · Boomi NathanAuthor: Boomi Nathan
J. BoomiNathan is a writer at SenseCentral who specializes in making tech easy to understand. He covers mobile apps, software, troubleshooting, and step-by-step tutorials designed for real people—not just experts. His articles blend clear explanations with practical tips so readers can solve problems faster and make smarter digital choices. He enjoys breaking down complicated tools into simple, usable steps.
Basics
Convention of Consistency
To compare the results of different years, it is necessary that accounting rules, principles, conventions and accounting concepts…
August 16, 2021 · Boomi NathanBasics
Objective Evidence Concept
According to the Objective Evidence concept, every financial entry should be supported by some objective evidence. Purchase should…
August 16, 2021 · Boomi NathanBasics
Accrual Concept
As stated above in the matching concept, the revenue generated in the accounting period is considered and the…
August 16, 2021 · Boomi NathanBasics
Matching Concept
Matching concept is based on the accounting period concept. The expenditures of a firm for a particular accounting…
August 16, 2021 · Boomi NathanBasics
Accounting Period Concept
The life of a business unit is indefinite as per the going concern concept. To determine the profit…
August 16, 2021 · Boomi NathanBasics
Dual Aspect Concept
There must be a double entry to complete any financial transaction, means debit should be always equal to…
August 16, 2021 · Boomi NathanBasics
Cost Concept
It is a very important concept based on the Going Concern Concept. We book the value of assets…
August 16, 2021 · Boomi NathanBasics
Going Concern Concept
Our accounting is based on the assumption that a business unit is a going concern. We record all…
August 16, 2021 · Boomi NathanBasics
Money Measurement Concept
According to this concept, “we can book only those transactions in our accounting record which can be measured…
August 16, 2021 · Boomi Nathan