The convention of materiality emphasizes that financial statements should include only material facts—those that are important and...

The convention of full disclosure requires that all important and relevant facts related to financial statements be fully revealed. This...

The convention of consistency dictates that the same accounting principles should be applied when preparing financial statements from one...

The matching concept asserts that revenue and the expenses incurred to earn that revenue must be recorded in the same accounting period....

The Accrual Concept, also known as the Periodicity Concept and Mercantile Accounting System, is a fundamental principle in accounting. It...

The Realisation concept dictates that revenue from business transactions should only be recorded in the accounting records when it is...

The dual aspect concept is a fundamental principle in accounting that underpins the recording of business transactions. This concept is...

The accounting cost concept dictates that assets are recorded in the accounting books at their purchase price, which includes...

The accounting period concept involves recording all transactions in the books of accounts with the understanding that profits will be...

The going concern concept states that a business will continue its operations indefinitely. In essence, it assumes that a business entity...

The money measurement concept stipulates that all business transactions must be expressed in monetary terms, using the currency of the...

The business entity concept establishes that, for accounting purposes, the business and its owners are considered separate entities. This...