Question

List of accounting concepts and conventions

Answer 1

Accounting Conventions. There are four main conventions in practice inaccounting: conservatism; consistency; full disclosure; and materiality.

Answer 2

Answer:

the accounting concepts are as follows

Explanation:

business entity concept

as per this concept business organisations are treated as a separate entity which can be distinguished from the owners are stakeholders who provide capital to the business this concept help in keeping private affairs of the owners and stakeholders separate from the business appears

dual aspect concept

dual aspect concept is the basis for the double entry system of bookkeeping all business transactions record in accounts have to aspects receiving benefit and giving benefit for example when a business acquires an asset receiving of benefit it must pay cash giving of benefit the value of benefit received equal to the benefit given

going concern concept

as per this concept is assumed that organisations will continue for a long time unless it is closed as per the long to which it is subject the financial statements are prepared at the end of the each financial year to measure the performance of the entity during the period and not on the assumption of closure or liquidation of entity

Money Measurement Concept

in accounting all transactions are recorded in a terms of money in other words events of transactions that cannot be expressed in terms of of money or not recorded in the books of accounts receipt of income payment of expenses purchase and sale of assets are monitory transactions that are recorded in the books

cost concept

as per this concept and asset is ordinary recorded at the price actually paid or incurred to acquire it it's cost and this cost becomes the base for the subsequent accounting treatment of further asset the assets recorded at the cost at time of purchase systemmatically be reduced through depreciation

accounting period concept

accounting period is interval of time at the end of which financial statements are prepared to ascertain the financial performance of the business the preparation of financial statements are the periodic intervals helps in taking timely correctly action and developing appropriate strategies

accrual concept

under the gas system of accounting the revenues and expenses are recorded only if they are actually received or paid in cash respective of the accounting period to which they belong