Accounting Concepts and Conventions

Revaluation of Assets Concept

Definition – Accounting Concept for Revaluation of Assets: Accounting concept for revaluation of assets defines and states that, it is proper adjustment made to the…
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Money Measurement Concept of Accounting

Definition, Explanation and Use of Money Measurement Concept (Convention, Principle) of Accounting or Monetary Unit Assumption: Money measurement concept (convention or principle) of accounting or…
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Objectivity Concept of Accounting

Definition, Explanation and Use of Objectivity Concept (Convention, Principle) of Accounting: Objectivity concept (convention or principle) of accounting defines and states that while preparing the…
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Substance Over Form Concept of Accounting

Definition of Substance Over Form Concept (Convention, Principle) of Accounting: Under Substance over form concept (convention, principle) of accounting, “transactions should be dealt with reference…
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Accrual Concept of Accounting

Definition, Explanation and Application of Accrual Concept (Convention, Principle) of Accounting: Accrual is derived from the verb “accrue” which means to increase, to accumulate or…
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Matching Concept of Accounting

Definition of Matching Concept (Convention or Principle) of Accounting: Matching concept (convention or principle) of accounting defines and states that “while preparing the income statement,…
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Materiality Concept of Accounting

Definition of Materiality Concept (Convention, Principle) of Accounting: Materiality concept (convention, principle) of accounting defines and states that “items, transactions or an event which significantly…
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Consistency Principle of Accounting

Definition of Consistency Principle (Concept, Convention) of Accounting: Consistency principle (concept, convention) of accounting defines and states that, “accounting transactions and accounting methods should be…
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Historical Cost Concept of Accounting

Definition of Historical Cost Concept (Convention, Principle) or Cost Principle of Accounting: Historical cost concept (convention, principle) or cost principle of accounting states and defines…
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Going Concern Concept of Accounting

Definition of Going Concern Concept (Convention, Principle): “Going concern concept (convention, principle) defines and assumes that a business intends to operate as a business unit for…
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Prudence Concept of Accounting

Definition of Prudence Concept (Convention, Principle) or Conservatism Concept of Accounting: Prudence concept (convention, principle) of accounting is also well known as conservatism concept. This…
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Business Entity Concept of Accounting

Definition of Business Entity Concept (Convention, Principle): “Business entity concept (convention, principle) of accounting entails that business is to be treated as a self-contained entity….
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Basic Accounting Concepts and Conventions

Basic Accounting Concepts, Conventions, Assumptions and Principles: Accounting concepts, conventions, assumptions and principles suggest logical and generally accepted accounting treatments and principles. These concepts are…
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