1 - BUSINESS ENTITY CONCEPTS :
A BUSINESS UNIT IS A ORGANIZATION OF PERSONS ESTABLISHED TO ACHIEVE AN ECONOMIC GOAL. BUSINESS ENTITY CONCEPTS SHOWS THAT THE BUSINESS UNIT IS SEPARATE AND DISTINCT FROM PERSON
2 - MONEY MEASUREMENT CONCEPT :
IN ACCOUNTING ALL THE EVENTS AND TRANSACTIONS ARE RECORDED IN TERM OF MONEY. IN OTHER WORD EVENT AND TRANSACTIONS WHICH ARE NOT EXPRESSED IN MONETARY TERM IS NOT RECORDED IN ACCOUNTING
3 - GOING CONCERN CONCEPT :
UNDER THIS CONCEPT, THE TRANSACTIONS ARE RECORDED ASSUMING THAT THE BUSINESS WILL EXIST FOR LONG PERIOD OF TIME.
4 - DUAL ASPECT CONCEPTS :
EVERY TRANSACTIONS HAS TWO-FOLD ASPECT
A - GIVING CERTAIN BENEFITS
B - RECEIVING CERTAIN BENEFIT
5 - PERIODIC CONCEPTS :
THE LIFE OF THE BUSINESS IS SEGMENTED INTO DIFFERENT PERIODS AND ACCORDINGLY THE RESULT OF EACH PERIOD IS ASCERTAINED.
6 - HISTORICAL COST CONCEPT :
THE TRANSACTIONS ARE RECORDED IN THE BOOKS OF ACCOUNT WITH RESPECTIVE AMOUNT INVOLVED. FOR EXAMPLE AN ASSET PURCHASED AND IT SHOULD RECORDED ONLY AMOUNT PAID AND THAT RECORD USE IN FUTURE.
7 - MATCHING CONCEPT :
THE TRANSACTIONS ARE RECORDED DURING PERIOD ONLY IN WHICH IT INCURRED
8 - REALISATION CONCEPT :
THIS CONCEPT ASSUME WHEN THE SALES IS MADE. SALE IS CONSIDERED TO BE COMPLETE WHEN THE OWNERSHIP AND PROPERTY ARE TRANSFERRED FROM BUYER TO SELLER AND CONSIDERATION SHOULD BE PAID IN FULL.
9 - ACCRUAL CONCEPT :
ACCORDING TO THIS CONCEPT THE REVENUE IS RECOGNIZED ON ITS REALIZATION AND NOT IN ITS ACTUAL RECEIPT.
10 - OBJECTIVE EVIDENCE CONCEPT :
EVERY TRANSACTIONS RECORDED IN THE BOOKS OF ACCOUNT MUST HAVE PROPER OBJECTIVE EVIDENCE MEAN'S THERE SHOULD BE A DOCUMENT THAT WHY TRANSACTION ARE MADE UP.
A BUSINESS UNIT IS A ORGANIZATION OF PERSONS ESTABLISHED TO ACHIEVE AN ECONOMIC GOAL. BUSINESS ENTITY CONCEPTS SHOWS THAT THE BUSINESS UNIT IS SEPARATE AND DISTINCT FROM PERSON
2 - MONEY MEASUREMENT CONCEPT :
IN ACCOUNTING ALL THE EVENTS AND TRANSACTIONS ARE RECORDED IN TERM OF MONEY. IN OTHER WORD EVENT AND TRANSACTIONS WHICH ARE NOT EXPRESSED IN MONETARY TERM IS NOT RECORDED IN ACCOUNTING
3 - GOING CONCERN CONCEPT :
UNDER THIS CONCEPT, THE TRANSACTIONS ARE RECORDED ASSUMING THAT THE BUSINESS WILL EXIST FOR LONG PERIOD OF TIME.
4 - DUAL ASPECT CONCEPTS :
EVERY TRANSACTIONS HAS TWO-FOLD ASPECT
A - GIVING CERTAIN BENEFITS
B - RECEIVING CERTAIN BENEFIT
5 - PERIODIC CONCEPTS :
THE LIFE OF THE BUSINESS IS SEGMENTED INTO DIFFERENT PERIODS AND ACCORDINGLY THE RESULT OF EACH PERIOD IS ASCERTAINED.
6 - HISTORICAL COST CONCEPT :
THE TRANSACTIONS ARE RECORDED IN THE BOOKS OF ACCOUNT WITH RESPECTIVE AMOUNT INVOLVED. FOR EXAMPLE AN ASSET PURCHASED AND IT SHOULD RECORDED ONLY AMOUNT PAID AND THAT RECORD USE IN FUTURE.
7 - MATCHING CONCEPT :
THE TRANSACTIONS ARE RECORDED DURING PERIOD ONLY IN WHICH IT INCURRED
8 - REALISATION CONCEPT :
THIS CONCEPT ASSUME WHEN THE SALES IS MADE. SALE IS CONSIDERED TO BE COMPLETE WHEN THE OWNERSHIP AND PROPERTY ARE TRANSFERRED FROM BUYER TO SELLER AND CONSIDERATION SHOULD BE PAID IN FULL.
9 - ACCRUAL CONCEPT :
ACCORDING TO THIS CONCEPT THE REVENUE IS RECOGNIZED ON ITS REALIZATION AND NOT IN ITS ACTUAL RECEIPT.
10 - OBJECTIVE EVIDENCE CONCEPT :
EVERY TRANSACTIONS RECORDED IN THE BOOKS OF ACCOUNT MUST HAVE PROPER OBJECTIVE EVIDENCE MEAN'S THERE SHOULD BE A DOCUMENT THAT WHY TRANSACTION ARE MADE UP.
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