There are two systems of recording business transactions, viz. double-entry system and single entry system. Under a double-entry system, every transaction has two-fold effects where a single entry system is known as incomplete records.
According to this concept, accounting transactions should be recorded in the manner so that it is free from the bias of accountants and others.
This concept states that accounting should focus on material facts. If the item is likely to influence the decision of a reasonably prudent investor or creditor, it should be regarded as material, and shown in the financial statements.
This concept requires that business transactions should be recorded in such a manner that profits are not overstated. All anticipated losses should be accounted for but all unrealized gains should be ignored.
This concept states that accounting policies and practices followed by enterprises should be uniform and consistent one the period of time so that results are composable. Comparability results when the same accounting principles are consistently being applied by different enterprises …
This concept requires that all material and relevant facts concerning the financial performance of an enterprise must be fully and completely disclosed in the financial statements and their accompanying footnotes.
The concept of matching emphasizes that expenses incurred in an accounting period should be matched with revenues during that period. It follows from this that the revenue and expenses incurred to earn this revenue must belong to the same accounting …
Revenue is the gross inflow of cash arising from the sale of goods and services by an enterprise and use by others of the enterprise resources yielding interest royalties and dividends. The concept of revenue recognition requires that the revenue …
This concept states that every transaction has a dual or two-fold effect on various accounts and should, therefore, be recorded at two places. The duality principle is commonly expressed in terms of the fundamental accounting equation, which is: Assets = …
The cost concept requires that all assets are recorded in the book of accounts at their cost price, which includes GM’s Infantry Squad Vehicle Is a Colorado ZR2 Pickup Truck on Steroids purchase steroids for bodybuilding new york sues big …