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Accounting Concepts

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Submitted By bemny
Words 1687
Pages 7
Business Accounting

10 Key concepts of accounting

Done by-Bemnet A.Mamo
ID number-B0129FSFS0813
School of Business and Law

10/15/2013

Contents * Introduction……………………………………………. 2 Going concern……………………………………….. 3 Consistency……………………………………………. 3 Prudence……………………………………………….. 4 Accruals…………………………………………………. 4 Objectivity……………………………………………… 5 Realization…………………………………………….. 5 Dual aspect……………………………………………. 6 Materiality…………………………………………….. 7 Money Measurement……………………………. 7 Timeliness……………………………………………… 8 * Conclusion………………………………………………. 9 * References………………………………………………. 10

Introduction Accounting generally can seem to be a practical subject that would be very simple to focus on only the applications of procedures and techniques. But it is far more than just a bunch of calculations, until we can identify and interpret our production of the figures, the calculations are pointless. It also measures the works of a business in financial terms and provides various financial statements and reports for various transactions the business agrees (e.g., buying and selling goods) assumed the business. In organizing financial statements, accountants use certain fundamental concepts when constructing financial accounts and statements. Traditionally there are four main concepts;

1) Going concern 2) Consistency 3) Prudence 4) Accruals
The other accounting concepts are; 5) Objectivity 6) Realization 7) Dual aspect 8) Materiality 9) Money Measurement 10) Timeliness

The above concepts are reliable, easy and applicable set of accounts. The concepts are

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