Commerce Exam > Commerce Questions > Describe any two accounting concepts which gu...
Start Learning for Free
Describe any two accounting concepts which guides the accountant at the recording stage.?
Verified Answer
Describe any two accounting concepts which guides the accountant at th...
Accounting is defined by the American
Accounting Association as “The process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information.”
Accounting concepts:
Business
Entity concept: Financial transactions of a business and its owner are treated separately.
Money
measurement concept: In accounting, the recorded transactions are the business transactions that are expressed in terms of money.
Dual aspect
concept: For every credit,a corresponding debit is made. The recording of a transaction is complete only
with this dual aspect.
Going concern
concept: In accounting, a business is anticipated to exist for a long time while fulfilling its commitments and obligations. This means that the business will liquidate its assets at “fire-sale” prices
Cost concept: In the first year of accounting, based on the original cost, the fixed assets of a business are recorded. Subsequently,depreciation is excluded while recording. On fixed assets, the rise or fall of
market price is excluded.
Accounting
year concept: Each business chooses a specific time period to complete a cycle of the accounting process—for example, monthly, quarterly, or annually—as per a fiscal or a calendar year.
Matching
concept: In a given accounting period, it is expected that for every entry of revenue recorded there should be an equal expense entry for calculating profit or loss.
Realization
concept: Profit is recognized only when it is earned. For example: Any advance is not considered unless the product is delivered to the customer.
This question is part of UPSC exam. View all Commerce courses
|
|
Explore Courses for Commerce exam
|
|
Top Courses for CommerceView all
Describe any two accounting concepts which guides the accountant at the recording stage.?
Question Description
Describe any two accounting concepts which guides the accountant at the recording stage.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Describe any two accounting concepts which guides the accountant at the recording stage.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Describe any two accounting concepts which guides the accountant at the recording stage.?.
Describe any two accounting concepts which guides the accountant at the recording stage.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Describe any two accounting concepts which guides the accountant at the recording stage.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Describe any two accounting concepts which guides the accountant at the recording stage.?.
Solutions for Describe any two accounting concepts which guides the accountant at the recording stage.? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Describe any two accounting concepts which guides the accountant at the recording stage.? defined & explained in the simplest way possible. Besides giving the explanation of
Describe any two accounting concepts which guides the accountant at the recording stage.?, a detailed solution for Describe any two accounting concepts which guides the accountant at the recording stage.? has been provided alongside types of Describe any two accounting concepts which guides the accountant at the recording stage.? theory, EduRev gives you an
ample number of questions to practice Describe any two accounting concepts which guides the accountant at the recording stage.? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup