Question

11. Explain the following:
(1) Dual Aspect Concept
(ii) Accrual Concept
(ii) Going Concern Concept
(iv) Cost Concept
(v) Accounting Period Concept​

Answer 1

Answer:

The Dual Aspect Concept indicates that each transaction made by a business needs to be recorded in two separate accounts. These accounts form a basis of double-entry accounting and other financial accounting which is used to generate reliable financial statements. The accounting equation used in this concept is.

Accural conceptis the most fundamental principle of accounting which requires recording revenues when they are earned and not when they are received in cash, and recording expenses when they are incurred and not when they are paid.

Going Concern Concept A going concern is a business that is assumed will meet its financial obligations when they fall due. It functions without the threat of liquidation for the foreseeable future, which is usually regarded as at least the next 12 months or the specified accounting period.