Convention of Disclosure
The Companies Act, 1956, prescribed a format in which financial statements must…
Convention of Consistency
To compare the results of different years, it is necessary that accounting…
Objective Evidence Concept
According to the Objective Evidence concept, every financial entry should be supported…
Accrual Concept
As stated above in the matching concept, the revenue generated in the…
Matching Concept
Matching concept is based on the accounting period concept. The expenditures of…
Accounting Period Concept
The life of a business unit is indefinite as per the going…
Dual Aspect Concept
There must be a double entry to complete any financial transaction, means…
Going Concern Concept
Our accounting is based on the assumption that a business unit is…
Money Measurement Concept
According to this concept, “we can book only those transactions in our…


