IndiaMART > Short Term Diploma & Course Provider > Certificate Courses
Accounting Concepts & Significance

Accounting Concepts & Significance

Get Latest Price
ACCOUNTING CONCEPTS
Accounting concept refers to the basic assumptions and rules and principles which work as the basis of recording of business transactions and preparing accounts. In order to maintain uniformity and consistency in preparing and maintaining books of accounts, certain rules or principles have been evolved. These rules/principles are classified as concepts and conventions. These are foundations of
Contact SellerAsk for best deal
Get Latest PriceRequest a quote

Jodhpurwala Ironcraft

Jodhpur, Rajasthan
View Mobile Number
Call +91-8048371623
Dial Ext 387 when connected
Verified Supplier
Consultants
Ask for more details from the seller
Contact Seller

Product Description

ACCOUNTING CONCEPTS

Accounting concept refers to the basic assumptions and rules and principles which work as the basis of recording of business transactions and preparing accounts. In order to maintain uniformity and consistency in preparing and maintaining books of accounts, certain rules or principles have been evolved. These rules/principles are classified as concepts and conventions. These are foundations of preparing and maintaining accounting records. Here are following various accounting concepts, their meaning and significance:-

    1.    Business entity concept

This concept assumes that, for accounting purposes, the business enterprise and its owners are two separate independent entities. Thus, the business and personal transactions of its owner are separate.

Significance

    This concept helps in ascertaining the profit of the business as only the business expenses and revenues are recorded and all the private and personal expenses are ignored.
    This concept restraints accountant from recording of owner’s private/ personal transactions.
    It also facilitates the recording and reporting of business transactions from the business point of view l It is the very basis of accounting concepts, conventions and principles.

    2.    Money measurement concept

This concept assumes that all business transactions must be in terms of money, that is in the currency of a country. Thus, as per the money measurement concept, transactions which can be expressed in terms of money are recorded in the books of accounts.

Significance

    This concept guides accountants what to record and what not to record.
    It helps in recording business transactions uniformly.
    If all the business transactions are expressed in monetary terms, it will be easy to understand the accounts prepared by the business enterprise.
    It facilitates comparison of business performance of two different periods of the same firm or of the two different firms for the same period.

    3.    Going concern concept

This concept states that a business firm will continue to carry on its activities for an indefinite period of time. It means that every business entity has continuity of life. Thus, it will not be dissolved in the near future. This is an important assumption of accounting, as it provides a basis for showing the value of assets in the balance sheet.

Significance

    This concept facilitates preparation of financial statements.
    On the basis of this concept, depreciation is charged on the fixed asset.
     It is of great help to the investors, because, it assures them that they will continue to get income on their investments.
     In the absence of this concept, the cost of a fixed asset will be treated as an expense in the year of its purchase.
     A business is judged for its capacity to earn profits in future.

    4.    Accounting period concept

All the transactions are recorded in the books of accounts on the assumption that profits on these transactions are to be ascertained for a specified period. This is known as accounting period concept. Thus, this concept requires that a balance sheet and profit and loss account should be prepared at regular intervals.




Interested in this service?Get Latest Price from the seller
Contact Seller

Product Image

Accounting Concepts & Significance

About the Company

Legal Status of FirmIndividual - Proprietor
Nature of BusinessConsultants
Annual TurnoverUpto Rs. 50 Lakh
IndiaMART Member SinceSep 2014
Welcome to the family of tax treatment. In present time, many direct & Indirect taxes are levied by the government on person. A person who is wiling to pay taxes, could not pay off its tax liabilities because of the lack of knowledge and awareness and this may arise the implication of levy of taxes, interest, penalty and prosecution.
Therefore, for the solution of your tax related issues and any related consultancy, “Tax Treatment” is present here to serve you. Through this website, you can solve your tax related problems. We offer you plaintiff of services at reasonable cost. To avail those services, just go to respective field and fill enquiry form. We would soon contact you.
Send your enquiry to this supplier
I agree to the terms and privacy policy

Seller Contact Details

Shailendra Bihani

1st Floor, 1076 Gandhipura BJS
Jodhpur - 342006, Rajasthan, India

Get Directions
View Mobile No.
Call +91-8048371623 Dial Ext 387 when connected
Send SMS
Send Email
Save time! Get Best Deal
Tell us what you
need
Receive seller
details
Seal the deal
Pay with IndiaMART
Save time! Get Best Deal
I agree to the terms and privacy policy
X
Hi
I agree to the terms and privacy policy
Verifying...
1

Have a requirement?
Get Best Price

Hi
I agree to the terms and privacy policy
Verifying...
1

Have a requirement?
Get Best Price