Explain the various accounting Concepts and Principles?


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Jessica Davenport Profile
Business Entity Concept In accounting, business is treated as separate entity from its owners.
Going Concern Concept  assumes the business will be around a long time and should continue to operate at its present scale
Money Measurement Concept Accounting to records only those transactions which can be expressed in terms of money. People or events can not be recorded
Cost Concept The 'cost' should not be confused with 'value'.
Duel Aspect Concept for every debit there is a credit
Accounting Period Concept  At the end of each accounting period and income statement/profit & loss Account and a Balance Sheet are prepared.
Matching Concept the aim of the business is to profit A correct statement of income requires a distinction between past, present and future expenditures. 
Realisation / Realization Concepts This concept emphasises that profit should be considered only when realised.

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