4. Going Concern Concept
An accounting theory known as the “going concern concept” believes that a company will continue...
5. Business Entity Concept
The accounting theory known as the “business entity concept” mandates that enterprises be treated independently...
6. Monetary Unit Assumption
The monetary unit assumption is one of the most important assumptions in accounting. It states...
7. Fraudulent Financial Reporting
It is a kind of corporate fraudulent in which the perpetrator intentionally misleads investors, creditors,...
8. Time Period Principle
One of the most fundamental accounting principles is the time period principle. Businesses are required...
9. Revenue Recognition Principle
According to the revenue recognition principle, income must be recorded when it is generated rather...
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...