Accountancy, asked by Jayakukreja2109, 10 months ago

How accounting concepts and conventions do work in current business scenario? Give examples from your surrounding

Answers

Answered by sanchitdubey388
0

Explanation:

Accounting Concepts

Business entity concept: A business and its owner should be treated separately as far as their financial transactions are concerned.

Money measurement concept: Only business transactions that can be expressed in terms of money are recorded in accounting, though records of other types of transactions may be kept separately.

Answered by lovingheart
0

Accounting has many concepts; here are a few of them:

Business entity concept

Money measurement concept.

Accounting year concept

Explanation:

  • Accounting is a complex yet easily understandable subject in which there are multiple concepts and principles which are followed throughout the world.
  • These concepts and conventions are something that takes place in every business in every part of the world. Here are some of the concept that are mentioned above.
  • The business entity concept states that when an accountant is auditing, he or she should always see the business as a different entity in other words, the business and the owner of the business should be treated as two different people.
  • The Money Measurement Concept says that in accounting the only transactions that are supposed to be shown in accounts should be expressed in numerical terms. Any other shorter transaction can be kept separately.
  • The accounting year concept states that accounting should happen from one period of an year to another for example 31st March to the 1st of April.

TO KNOW MORE:

Define Accounting. Explain the accounting concepts which guide the accountant at the recording stage.

https://brainly.in/question/198341

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