11. Historical Cost
The initial cost of an asset is referred to as its “historical cost” in accounting....
12. Matching Principle
The matching principle, which requires revenues and costs to be recognised in the period in...
13. Relevance & Faithful Representation
Accounting’s “relevance and faithful representation” concept states that financial data must be both truthfully represented...
14. Materiality Concept
Accounting professionals are required to record and disclose information that is relevant to the financial...
15. Substance Over Form
In accounting, “substance over form” is a principle that requires transactions to be recorded and...
16. Prudence Concept
The Prudence Concept is one of the most important concepts in accounting. It is an...
17. Understandability
Understandability is a qualitative characteristic of accounting information that refers to the ease with which...
18. Comparability Principle
The comparability principle is an important accounting concept that states that financial statements must be...
19. Consistency Concept
The consistency concept in accounting states that a corporation should employ the same accounting principle...
20. Subsequent Events
Events that take place after the balance sheet date but before financial statements are released...