Accounting Concepts

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:

  1. Separate Entity Concept
  2. Going Concern Concept
  3. Money Measurement Concept
  4. Cost Concept
  5. Dual Aspect Concept
  6. Accounting Period Concept
  7. Matching Concept
  8. Realization Concept

Accounting Conventions

Accounting conventions are the customs and traditions that guide accountants when preparing accounting statements. Some important accounting conventions are:

  1. Convention of Conservatism
  2. Convention of Consistency
  3. Convention of Materiality
  4. Convention of Full Disclosure

True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

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