Question

EXPLAIN THE FOLLOWING:

1) DUAL ASPECT CONCEPT

2) ACCRUAL CONCEPT

3) GOING CONCERN CONCEPT

4) COST CONCEPT

5) ACCOUNTING PERIOD CONCEPT ​

Answer 1

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EXPLAIN THE FOLLOWING:

1) DUAL ASPECT CONCEPT

2) ACCRUAL CONCEPT

3) GOING CONCERN CONCEPT

4) COST CONCEPT

5) ACCOUNTING PERIOD CONCEPT

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1.The dual aspect concept states that every business transaction requires recordation in two different accounts. This concept is the basis of double entry accounting, which is required by all accounting frameworks in order to produce reliable financial statements

2.Accrual concept is 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.

3.Going concern is an accounting term for a company that has the resources needed to continue operating indefinitely until it provides evidence to the contrary. This term also refers to a company's ability to make enough money to stay afloat or to avoid bankruptcy

4.The cost concept of accounting states that all acquisition of items (such as assets or things needed for expending) should be recorded and retained in books at cost. Thus, if a balance sheet shows an asset at a certain value it should be assumed that this is its cost unless it is categorically stated otherwise.

5.An accounting period is a period of time that covers certain accounting functions, which can be either a calendar or fiscal year, but also a week, month, or quarter, etc. Accounting periods are created for reporting and analyzing purposes, and the accrual method of accounting allows for consistent reporting.

Answer 2

1.The dual aspect concept states that every business transaction requires recordation in two different accounts. This concept is the basis of double entry accounting, which is required by all accounting frameworks in order to produce reliable financial statements

2.Accrual concept is 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.

3.Going concern is an accounting term for a company that has the resources needed to continue operating indefinitely until it provides evidence to the contrary. This term also refers to a company's ability to make enough money to stay afloat or to avoid bankruptcy

4.The cost concept of accounting states that all acquisition of items (such as assets or things needed for expending) should be recorded and retained in books at cost. Thus, if a balance sheet shows an asset at a certain value it should be assumed that this is its cost unless it is categorically stated otherwise.

5.An accounting period is a period of time that covers certain accounting functions, which can be either a calendar or fiscal year, but also a week, month, or quarter, etc. Accounting periods are created for reporting and analyzing purposes, and the accrual method of accounting allows for consistent reporting.

Explanation:

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