Accounting concepts
These are the basic assumptions or ideas upon which the science of accounting is based. These are fundamentals to accounting practice. These include:
- Separate Entity Concept
- Going Concern Concept
- Money Measurement Concept
- Cost Concept
- Dual Aspect Concept
- Accounting Period Concept
- Matching Concept
- Realization concept
Accounting Conventions
The term “Accounting Conventions” includes those customs and traditions which guide the accountants to prepare accounting statements. Following are some important conventions:
- Convention of Conservatism
- Convention of Consistency
- Convention of Materiality
- Convention of Full disclosure