Accounting concepts: The eight main types of accounting concepts

The eight main types of accounting concepts noted in figure 1 are the business entity concept , money measurement concept , dual aspect concept , going concept , accounting period concept , cost concept , the matching concept , and accrual concept . Accounting Concepts and Principles are a set of broad conventions that have been devised to provide a basic framework for financial reporting. As financial reporting involves significant professional judgments by accountants, these concepts and principles ensure that the users of financial information are not mislead by the adoption of accounting policies and practices that go against the spirit of the accountancy profession. Accountants must therefore actively consider whether the ... ACCOUNTING CONCEPT : MEANING The term concept also known as postulates refer to such ideas which are accompanied with different accounting procedures. These are the fundamental ideas or the general assumptions underlying the theory and practice of financial accounting and are broad working rules for all accounting activities and developed by the accounting profession. The important concepts are listed below: 1) Business Entity Concept 2) Money Measurement Concept 3) Going Concern Concept 4 ... Find the right instructor for you. Choose from many topics, skill levels, and languages. Join millions of learners from around the world already learning on Udemy.