Use, by you or one client, in a single end product which end users are not charged for. The total price includes the item price and a buyer fee.
Business entity concept states owner and business are two different entities in the eye of law
Money measurement concept states only financial transactions need to be recorded in the books of accounts.
Going concern concept states that business will continue to operate for an indefinite period of time
Cost concept states assets will be recorded in the books at cost price though it’s market value will change with passage of time.
Dual Aspect concept states that every transaction has two fold effects and double entry system of book keeping has to be followed while recording the transactions.
Periodicity concept states the whole life of business is divided into different accounting periods say for example one year period to facilitate preparation of financial statements.
Matching concept states expenses relating to particular period are to be matched with revenues relating to that period.
Realisation concept which states that revenue is recognized to be earned on the date on which it is realized.
Objective evidence concept states that every transaction should be supported by a reliable evidence to avoid frauds.
According to accrual concept, the effects of the transactions are recognised on mercantile basis, i.e., when they occur and not when cash is paid or received.
Convention of consistency states that accounting rules and procedures should be followed consistently year after year to facilitate comparison.
Convention of full disclosure implies that the accounts must be prepared honestly and all material information should be disclosed in the accounting statement.
Convention of materiality states that all material transactions have to be disclosed in financial statements.Whether a transaction is material or immaterial depends according to size of the organization.
Convention of conservatism states – provide for probable losses though not for probable gains.
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