What are accounting concepts?

Question

Accepted Answer

Accounting concepts are fundamental principles and guidelines that govern the field of accounting.

Accounting concepts provide a framework for recording, analyzing, and reporting financial transactions.
They ensure consistency and comparability in financial statements.
Some common accounting concepts include the accrual concept, going concern concept, and matching concept.
The accrual concept states that revenues and expenses should be recognized when earned or incurred, regardless of when cash is received or paid.
The going concern concept assumes that a business will continue to operate indefinitely.
The matching concept requires expenses to be matched with the revenues they help generate in the same accounting period.
Other important accounting concepts include the consistency concept, materiality concept, and prudence concept.

Accepted Answer

. Business entity
. Money measurement
. Going concern

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