#54 Accounting Concepts, Principles & Conventions _ Part 1 | CA CMA FOUNDATION

Accounting concepts define the assumptions on the basis of which financial statements of a business entity are prepared. The following are the widely accepted accounting concepts: (a) Entity concept (b) Money measurement concept (c) Periodicity concept (d) Accrual concept (e) Matching concept (f) Going Concern concept (g) Cost concept (h) Realisation concept (i) Dual aspect concept (j) Conservatism (k) Materiality Accounting principles are a body of doctrines commonly associated with the theory and procedures of accounting serving as an explanation of current practices and as a guide for selection of conventions or procedures where alternatives exist.” Accounting conventions emerge out of accounting practices, commonly known as accounting principles, adopted by various organizations over a period of time. There are three fundamental accounting assumptions: (i) Going Concern (ii) Consistency (iii) Accrual Qualitative characteristics are the attributes that make the information provided in financial statements useful to users. Understandability, Relevance, Reliability, Comparability, Materiality, Faithful Representation, Substance over Form, Neutrality, Prudence, Full, fair and adequate disclosure and Completeness are the important qualitative characteristics of the financial statements. ------------------------------------------------------------------------ Questions Solved: What is Accounting Concepts What is Accounting Principles What is Accounting Conventions What is Entity concept What is Money measurement concept What is Periodicity concept What is Accrual concept What is Going Concern concept What is Cost concept What is Realisation concept What is Dual aspect concept What is Conservatism What is Consistency What is Materiality What is Fundamental Accounting Assumptions What is Financial Statements Qualitative Characteristics of Financial Statements What is Substance Over Form What is Neutrality What is Prudence Join Our Telegram Group Main Channel : https://t.me/kallanzclasses For Discussion : https://t.me/joinchat/Ur7MosJ0tV4ihLwA #CA #CMA #CA_Foundation #CMA_Foundation #Accounts #AccountingConcepts #CAFoundation #CMAFoundation #Accounts