fundamental accounting concepts

Definition:

the broad basic assumptions which underlie periodic financial accounts of business enterprises. Four concepts as being generally accepted at present. They are the ‘accruals’ concept, the ‘consistency’ concept, the ‘going-concern’ concept and the concept of ‘prudence’ in accounting. Many writers on accounting have sought to identify simple ideas which may be regarded as underlying the subject, and have called such ideas ‘concepts’, ‘conventions’, ‘principles’ or ‘rules’. See the entries for ‘accounting principles’, ‘fundamental accounting assumptions’.



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