Chapter 6: Accounting Concepts

Just like a language has certain rules of grammar, certain principles are used in the language of accounting to understand it better.

Details

To ensure uniformity in accounting, certain accounting principles, concepts or conventions are used while writing accounts and preparing financial statements. The terms - principle, concept, convention, doctrine, postulate and assumption are sometimes used interchangeably. These accounting principles provide a theoretical and logical base to accounting. They are based on logic and thus to avoid divergent practices in writing accounts and in preparing financial statements, accountants accept these principles or concepts which are framed after deliberations amongst experts of the subject. As these principles are widely accepted and applied by accountants, they are also known as "Generally Accepted Accounting Principles" or GAAPs.

In this course:
+ Introduction
+ Accounting Principles, Concepts, and Conventions
+ Illustrations - Exercise


Curriculum

  • Q.1 - Q.7) State the name of the accounting principle concept or convention with which the following statements or situations are associated.
    1 m 31 s
  • Q.8 - Q.14) State the name of the accounting principle concept or convention with which the following statements or situations are associated.
    2 m 12 s
  • Q. 15) With which accounting principle/convention is the following statement associated?
    1 m 22 s
  • Q. 16 - Q.21) State the name of the accounting principle concept or convention with which the following statements or situations are associated.
    1 m 15 s
  • Q. The owner of a business takes away goods of Rs. 3,000 from business for personal use. Where will you debit this? According to which concept?
    1 m
  • Q. In the question below, a statement is given. Say whether this statement is true or false. If it is false, rewrite the statement in order to correct it and state the principle associated with it.
    1 m
  • Q. According to which accounting principle or concept, does bank credit interest on doubtful advances to Interest Suspense Account?
    1 m
  • Q. Answer the question based on the given information.
    1 m
  • 1. Going concern concept
    1 m 2 s
  • 2. Consistency Concept
    1 m 13 s
  • 3. Accrual Concept
    1 m 13 s
  • 4. Accounting Entity Concept
    1 m 20 s
  • 5. Money Measurement Concept
    1 m
  • 6. Accounting Period Concept
    1 m 18 s
  • 7. Full Disclosure Concept
    1 m 7 s
  • 8. Materiality Concept
    1 m 27 s
  • 9. Prudence Concept
    1 m 8 s
  • 10. Cost Concept
    1 m
  • 11. Transaction of Dual Aspect Concept
    1 m
  • Q.3. Explain the concept of 'going concern' with an example.
    1 m
  • Q.4. Explain the concept of consistency with an example.
    1 m
  • Q.5. Explain the concept of accrual with example.
    1 m 5 s
  • Q.6. Explain the concept of accounting entity with example.
    1 m
  • Q.7. Explain the concept of consistency with example.
    1 m
  • Q.8. Explain the concept of money measurement with example.
    1 m
  • Q.9. Explain the concept of periodicity with example.
    1 m
  • Q.10. Explain the concept of full disclosure with example.
    1 m
  • Q.11. Explain the concept of materiality with examples.
    1 m
  • Q.12. Explain the concept of prudence with examples.
    1 m 4 s
  • Q.13. Explain the concept of dual aspect with example.
    1 m 29 s
  • Definitions (1 - 7):
    1 m 28 s
  • Definitions (8 - 14)
    1 m 19 s
  • Q. Which three accounting principles or concepts or conventions are treated as fundamental accounting assumption by ICAI?
    1 m
  • Q. Explain the need for accounting principles or concepts or conventions or postulates or assumptions that are use while writing accounts and in preparing financial statements.
    1 m
  • Q. State the name of the accounting principle, concept or conventions with which the following statements or situations are associated:
    1 m
  • Q. State the name of the accounting principle, concept or conventions with which the following statements or situations are associated:
    1 m
  • Q. State the name of the accounting principle, concept or conventions with which the following statements or situations are associated:
    1 m 2 s
  • Chapter 6 Exercise
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