Accounting Principles
Accounting principles To maintain uniformity and consistency in accounting records, certain rules or principles have been developed which are generally accepted by the accounting profession. These rules are called by different names such as principles, concepts, conventions, postulates, assumptions and modifying principles. One such accounting principle which is generally accepted is " GAAP ". Generally Accepted accounting principles (GAAP) refers to the rules or guidelines adopted for recording and reporting business transactions, to bring uniformity in the preparation and the presentation of financial statements. These principles are also referred to as concepts and conventions. The accounting principles are classified into 1.Accounting concepts 2.Accounting Conventions Basic Accounting Concepts The important concepts have been listed as below: 1. the Business entity 2. Money measurement 3. Going concerned 4. Accounting period 5. Cost 6. Dual aspect (or Duality...
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