User talk:Haseeb999

12 Basic Accounting Concepts & Principles
1.	Business Entity Concept The business entity concept means accounting is concerned only with transaction affect the firm, but not the owner’s personal transactions.

2.	Dual Aspect Concept The Dual aspect concept states that there are two aspects of accounting, one represented by the assets of business and the other by the liabilities and capital introduced by the owner. Assets = Capital + Liabilities

3.	Money Measurement Concept The Money Measurement Concept means accounting is concerned only with transactions measurable in units of money, on which general agreement can also be obtained. OR Quantifiably Quantifiably refers to the ability to records transactions in units of money.

4.	Historical Cost Concept The historical cost concept states those assets normally shown at their original costs of acquisition. Any changes in the market value after the purchase is ignored.

5.	 Going Concern Concept The going concern states that a business is assumed to continue to operate in the foreseeable future. If business were not assumed to be going concern, or they were to be sold immediately, then assets would be shown at current values instead of historical costs.

6.	Concept of Stable Monetary Measures The concept of stable monetary measures assumes that the value or purchasing power of money is constant, ignoring the effects of inflation or deflation.

7.	Realization Concept The realization concept specifies the point in time at which revenue should be recognized and recoded in the books.

8.	Accrual Concept The accrual concept states that revenues and expenses are recognized in the profit and loss account for the period in which they have been earned or incurred, not when they are received or paid.

9.	Matching Concept The matching concept states that revenue should be linked with its relevant expenses or cost n the same period.

10.	Prudence Concept (or Conservatism) The prudence concept ensures that the net assets and profits of a business are not overstated.

11.	Materiality Concept The concept is used to judge what sorts of transactions or items are significant and their classification in the financial statements.

12.	Principle of Consistency The principle of consistency is to keep using the same accounting methods, expect for special cases.