What are the accounting concepts and conventions? Name them and explain any two accounting concepts in detail.
Answers
The term accounting concepts is used to connote basic accounting postulates,i.e, necessary assumptions and conditions upon which accounting is based.
Accounting conventions:-
Accounting conventions are the traditions,usage,and customs which are in use since long.
Two important accounting concept:
1.Business entity concept:- In accounting .business is treated as a seprate entity from its owners.Accounts are prepared to give information about the business and not those who own it.
2.Dual aspect concept:-This concept lies at the heart of whole accounting system.Modern accounting system is based on dual aspect concept.It is based on the principel that for every debit transaction,there is a corresponding credit transaction.
Answer:
Accounting concepts:-
The term accounting concepts is used to connote basic accounting postulates,i.e, necessary assumptions and conditions upon which accounting is based.
Accounting conventions:-
Accounting conventions are the traditions,usage,and customs which are in use since long.
Two important accounting concept:
1.Business entity concept:- In accounting .business is treated as a seprate entity from its owners.Accounts are prepared to give information about the business and not those who own it.
2.Dual aspect concept:-This concept lies at the heart of whole accounting system.Modern accounting system is based on dual aspect concept.It is based on the principel that for every debit transaction,there is a corresponding credit transaction.