Question

What are the basic accounting concept and explain their implications?

Answer 1

basic accounting concept are -business entity concept , money measurement concept , going concern concept , accounting period concept , realisation concept and it's implications are short term effects and long term effects

Answer 2

Answer:

There are five basic concept -

1) Business entity concept

2) Cost concept money

3) measurement concept

4) going concern concept

5) dual aspect concept

Explanation:

There are five basic concept -

1) Business entity concept

2) Cost concept money

3) measurement concept

4) going concern concept

5) dual aspect concept

1) Business entity concept -

1) In this concept all the transaction related to the business are recorded separately from other business .

2) seperate records is required to not get mistake and confusion .

3) It does not include the liabilities and assets of the owner or other entity.

2) Cost concept money-

1) The cost of money in this concept is actual .

2) the cost is incurred in the production and sales of goods and services.

3) measurement concept-

1) In this only those transactions is recorded which are expressed in the term of money and if it is not in the money then it will not be recorded

2) the base of this is quantitative information not qualitative information.

4) Going concern concept-

1) in this concept only those profit's and losses are recorded which are related to going on year.

2) Financial statement are prepared on the current market value but on the base of cost .

5) Dual aspect concept-

1) in this every transaction have dual effect

2) In these records are shown same as the movements of fund .

3) everything is accurate in this .

FINAL ANSWER - There are five basic concept -

1) Business entity concept

2) Cost concept money

3) measurement concept

4) going concern concept

5) dual aspect concept

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