Uncategorized
What is money measurement concept ?
The concept of money measurement states that only those transactions and happenings in an organisation which can be expressed in terms of moneysuch as sale of goods or payment of expenses or receipt of income, etc., are to be recorded in the book of accounts. All such transactions or happenings whichcan not be expressed in … Read more
What is business Entity Concept ?
The concept of business entity assumes that business has a distinct and separate entity from its owners. It means that for the purposes of accounting, the businessand its owners are to be treated as two separate entities. Keeping this in view, when a person brings in some money as capital into his business, in accountingrecords, … Read more
What are basic accounting concepts ?
The basic accounting concepts are referred to as the fundamental ideas or basic assumptions underlying the theory and practice of financial accounting andare broad working rules for all accounting activities and developed by the accounting profession. The important concepts have been listed as below:• Business entity;• Money measurement;• Going concern;• Accounting period;• Cost• Dual aspect … Read more