Accounting Concepts
Business Entity Concepts
Accrual Concept
Money Measurement Concept
Cost Concept
Full Disclosure Concept
Matching Concept
Accounting Period Concept
Materiality Concept
Consistency Concept
Conservation Concept
Going Concern Concepts
Recognition Concept
Dual Aspect Concept
separates the business from its owner
concerned the owner and the business are two separates entities
allows costs and revenues to be allocated to future accounting periods
assumes a business will continue to trade for forseeable future
provides that accounting for a business should be fair and reasonable
same methods should be used and followed over the years which use to calculate the value such as inventory and depreciations
recognizes expenses as they happen in generation of revenue
recognizes revenue as the goods are delivered to the customer
states that the revenue and the expenses incurred to earn the revenues must belong to the same accounting period
a GAAP relating to the importance or significance of the account or transaction
only records the transaction which can be expressed in monetary terms
In general, the time period reflected by a set of financial statements
In terms of taxation, it is 12 month period a taxpayer uses to determine his or her income tax
relevant to business operation and decisions can be grouped on the basis of their nature and propose
mean the a record of each transaction made in two separate account
it must be both earned and realized for revenue to be recognized
provide information that is sufficient importance to influence the judgement and decisions of an informed user