Accounting concept are use full to all
Answers
Explanation:
Business Entity Concept :- Business is separate from owner personal expenses Income assets & Liabilities of the owner are recorded. Money Measurement Concept :- Only monetary transactions are recorded also sales purchase etc are recorded in terms of accounts and not in quantity.
Answer:
Important concepts of Accounting:
Types of accounting concepts:
1. Business entity concept: business is separate from owner personal expenses income assets & liabilities of the owner are recorded.
2. money measurement concept: only monetary transactions are recorded also sales purchase etc are recorded in terms of account's and not in quantity.
3. Going concern concept: the books of account are prepared with assumption that business will continue for infinite years in future. Hence assets and liabilities are recorded at historical value and current market value.
4. Accounting period concept: it means that books of account have to be regularly prepared at fixed intervals of time as per companies act & income tax accounting period is 1 year for listed companies book of accounts is prepared every 3 years.