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Answered 2009-10-06 09:46:13

list 5 advantages of prudence concept

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the fundamental principles of accounting are as follows:a. the going concern conceptb. the consistency conceptc. the separate valuation conceptd. accruals and matching concepte. the concept of prudence


Accounting concept are customs and tradition which are used as a guide for preparation of financial statements.


where are 7 Accounting concept in the books of CIE which are done for methods e.g deprecation=prudence if the company will complete forward=going concern etc.idea is more basic to accounting than the accounting unit or entity, a term used to identify the organization for which the accounting service is to be provided and whose accounting or other...Accounting concept are customs and tradition which are used as a guide for preparation of financial statements


preparation of account involve estimations, measurements and and valuations according to the conservatism or prudence concept it is a good practice to follow a procedure that tends to understate things.


There are eight accounting concepts: Business entity concept, cost concept, going concern concept, matching concept, objectivity concept, unit of measure concept, adequate disclosure concept, and accounting period concept


Financial accounting is a recording, summaring, classifying, communication, anlaysing of business transactions in oder to ascertain the financial position at a given time. and the trms use in financial accounting are: The dual concept in accounting, that is Debit the receiver's account and credit the Giver's account


where are 7 Accounting concept in the books of CIE which are done for methods e.g deprecation=prudence if the company will complete forward=going concern etc.....


From the Webster's Online Dictionary: The prudence concept states that profits and inventory should never be over stated an losses must not be under stated . the concept must be use when producing financial statements.... Next time you need an answer like this, just type in the words: Prudence Concept in your navigation bar and presto: Answer supplied.


Concepts tend to be written in the accounting standards whereas conventions are not and are assumed. Examples of concepts would be: Accruals concept, Prudence concept. Examples of conventions would be: double entry, accounting equation (assets - liabilities = capital)


The importance of the entity concept in accounting is that you are able to determine the financial status of a business. The entity concept demands that the business and the owners should be treated as separate entities.


source : "Ultimate book of accountancy" Ans: Main concepts of accounting are (1) Business entity concept (2) Money Measurement concept (3) Cash and Accrual Concept (4) Prudence concept (5) Cost concept (6) Matching Concept For more detail.... see... "ULTIMATE BOOK OF ACCOUNTANCY" Published by vishvas publications ... vishvasbook@yahoo.com


Money Measurement Concept in accounting, also known as Measurability Concept, means that only transactions and events that are capable of being measured in monetary terms are recognized in the financial statements.


Prudence against Realization Realization of profit of an organization, the amount of sales used is both credit and cash sales but this contradicts with prudence which says profits should not be anticipated since we are not sure that the credit sales will actually be realized


Realization concept is also known as Revenue recognition concept. Under this concept revenue is said to be recognized by the seller when it is earned irrespective of cash received or not.


concept of responsibility accounting


When accountants prepare financial statements, they assume that the life of the business can be divided into time periods. This is called the accounting period concept. Using this concept, accountants must determine in which period to report the revenues and expenses of the business.


Importance of accounting concept. To explain their significance in the preparations of accounting statements


accounting concept are the basic knowledge of accounting on which basis monetry transation are made in accounting book.


HomeThis BlogAuthorAccounting BodiesSubscribeAccounting TermsRevision NotesQuestionsE-BooksFeaturedinternet advertisingMajor Accounting Concepts


Accounting principles are those rules and concepts that are generally accepted as standards for the field of accounting. These are standardized by governing bodies such as GAAP and IASB. Few core principles are Accrual concept, Business Entity Concept, Time Period Assumption etc. Reference: http://www.gripaccounting.com/financial-accounting/principles/


In accountancy, the concept of consistency refers to using the same accounting methods each year. This ensures that the financial statements for each year can easily be compared with each other.


Basic accounting concept that once an accounting method is adopted, it should be followed consistently from one accounting period to the next. If, for any reason, the accounting method is changed, a full disclosure of the change and an explanation of its effects on the items of the financial statements must be given in the accompanying notes (footnotes). One of the duties of an auditor is to make sure the consistency principle is being followed because, otherwise, any change might make interpretation of the financial data a futile exercise. Also called consistency concept. See also accounting concepts.


1)going concern 2)consistency 3)materiality 4)principle of prudence 5)business Entity Accounting principles are those rules and concepts that are generally accepted as standards for the field of accounting. These are standardized by governing bodies such as GAAP and IASB. Few core principles are Accrual concept, Business Entity Concept, Time Period Assumption etc.


concept of financial analysis?


Generally accounting information systems are a computer-based system of tracking financial activity in a company, and presenting that transactions in a organized financial statement. Currently, accounting software can be purchased off the shelf, which is much cheaper than when it had to developed by the company.