Accounting Principles

                              Accounting Principles

Accounting principles may be defined as those rules of actions or conduct which are adopted by the accounts universally while recording accounting transactions. They are a body of doctrines commonly associated with the theory and procedures of accountings. They are serving as an explanation of current practices and as a guide for selection of conventions or procedures where alternatives exists. 

These principles can be classified in two groups:

(a) Accounting Concepts 

(b) Accounting Conventions

Accounting Concepts:

               The term 'concepts' includes those basic assumption or conditions on which the science of accounting is based.

The following are the important concepts:

(a) Business Entity
(b) Going Concern Concept
(c) Money Measurement Concept
(d) Cost Concept
(e) Dual Ascept Concept
(f) Accounting Period Concept
(g) Matching Concept
(f) Realization Concept