What is meant by accounting concept?

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Accounting concept are the basic assumption that underlie the preparation of periodic financial statements of a business entity. they are rules regulating the manner in which transactions are recorded.


They are deemed to be in existence though not actually stated or referred to. The concepts and conventions give reasons why accounting data are prepared in atypical manner. example of accounting concept include going concern and prudence.

Author: amidu edson

I am certified accountant with more than 5 years of teaching experience. Currently am teaching auditing and assurance, management accounting and financial accounting for student preparing for professional exams such as ACCA and CPA.

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