Question

1. State any one Basic Accounting Concept.​

Answer 1

any one Basic Accounting Concept is :

Conservatism concept. Revenue is only recognized when there is a reasonable certainty that it will be realized, whereas expenses are recognized sooner, when there is a reasonable possibility that they will be incurred. This concept tends to result in more conservative financial statements.

Answer 2

Answer:

Business Entity Concept

This accounting concept separates the business from its owner. As far as accounting is concerned the owner and the business are two separate entities. This will help the accountant identify the business transactions from the personal ones. All forms of business organizations (proprietorship, partnership, company, AOP etc) must follow this assumption.

So for example, if the owner brings in additional capital into the business, we will treat this as a liability on the balance sheet of the business.

Explanation: