Unit-12 Basic Concepts Relating to Final Accounts

In this unit you will learn about the basic accounting concepts or principles which guide the preparation of final accounts.

Explain briefly the main accounting concepts to be observed at the time of preparing final accounts.

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Learning Pundits Content Team

Written on Jun 25, 2019 4:27:22 PM

Accounting concepts are broad working rules adopted by the accounting profession as guides for recording and reporting the affairs and activities of a business. For convenience, these concepts are classified into two groups:

  • Concepts to be observed at the recording stage.
  • Concepts to be observed at the reporting stage i.e., at the time of preparing the final accounts.

The first group of concepts were fully discussed. The second group of concepts are:

  1. Going Concern Concept
  2. Accounting Period Concept
  3. The Matching Concept
  4. Conservatism Concept
  5. Consistency Concept
  6. Full Disclosure Concept
  7. Materiality Concept

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