Accounting Concepts:

• The dual aspect principle has specific relevance to balance sheet. According to this principal, every transaction is concerned as one that has dual effects and thus, it is recorded on debit side and also credit side. Because of this, we ensure the equality of assets to liabilities and owner's equity.
• All the figures are described in monetary units irrespective of its nature. In our illustration we had cash, merchandise inventory and shop premises all shown in monetary quantities.
• each transaction we reflected was in respect of merely the business entity and as the balance sheet show the financial position of the business entity and not such of the owners.
• All the valuations were depends on the assumption of a going relates, and not depends on liquidated value. Since a consequence, the total value of the assets is written off over a period by a mechanism termed as depreciation.
• All the assets were depends on historical cost as the origin of valuation.

Posted Date: 4/3/2013 6:33:21 AM | Location : United States

Ask an Expert

Related Discussions:- Accounting concepts, Assignment Help, Ask Question on Accounting concepts, Get Answer, Expert's Help, Accounting concepts Discussions

Write discussion on Accounting concepts
Your posts are moderated

Write your message here..

Related Questions

Gaap and ifrs, how much does a paper costs regarding differences and simili... how much does a paper costs regarding differences and similiarities of gaap and ifrs for 4 companies

Determine the carrying amount of intangible assets, A company incurred the ... A company incurred the following expenditure during the year:                                                                                                    $'000  $'000  Lic

Development of financial accounting standards, Development of financial acc... Development of financial accounting standards Several organizations are considerable in the establishment of generally accepted accounting principles (GAAP) for businesses or g

Accounting process, In previous section you learnt about the accounting inv... In previous section you learnt about the accounting involves four stages: (i)  recording the transactions, (ii)  classifying-the transactions, (iii) summarising  the trans

Preparation and analysis of final accounts, The main function of accounting... The main function of accounting is to accumulate accounting data so as to calculate the profit and loss made through the business firm throughout and also to KNOW the financial pos

Goodwill., Dear Sir, I am an accountant working in a company with limited ... Dear Sir, I am an accountant working in a company with limited liability (WLL), one of the partners (A) will withdraw from our company. One of the existing partner (B) of the comp

Official legal documents - governing documents, Governing Documents - Offic... Governing Documents - Official legal documents which dictate how an entity is operated. Governing documents of a CORPORATION include ARTICLES OF INCORPORATION and BYLAWS; a PARTNER

Revenue recognisation, what all include in company revenue recoganisation what all include in company revenue recoganisation

Explain the procedure followed in government system , Explain the procedure... Explain the procedure followed in government system of accounting in india

Imputed interest, Imputed Interest - If no interest or an unrealistic amoun... Imputed Interest - If no interest or an unrealistic amount of interest is charged in a salve involving certain kinds of deferred payments, then transaction would be treated as if r