Accounting concepts: Learn what accounting concepts

Learn what accounting concepts are, how they differ from conventions, and why they are important for businesses and accountants. Explore 11 common accounting concepts with definitions and examples, such as business entity, going concern, money measurement and accrual. ACCOUNTING CONCEPT : MEANING The term concept also known as postulates refer to such ideas which are accompanied with different accounting procedures. These are the fundamental ideas or the general assumptions underlying the theory and practice of financial accounting and are broad working rules for all accounting activities and developed by the accounting profession. The important concepts are listed below: 1) Business Entity Concept 2) Money Measurement Concept 3) Going Concern Concept 4 ... Applying accounting concepts and conventions is important in a business as it helps to make major financial decisions. Read on to learn more about both. Accounting concepts are the basic assumptions or ideas upon which the science of accounting is based. These are the fundamentals of accounting practice. These include: separate entity concept , going concern concept , money measurement concept , cost concept , dual aspect concept , accounting period concept , matching principle realization principle.