Accounting Principles

Accounting Principles are the building blocks over which all the accounting system works. This is universally acceptable concepts which every entity around the world has to follow. If anyone decides not to follow the accounting principles, no one is going to accept his or her financial statements. These concepts help an accountant a lot in the preparation of financial statements as he or she cannot make his or her own judgments over the recording of financial transaction as these principles guide the accountant at every stage of accounting cycle. International Financial Reporting Framework (IFRS) and US GAAP (Generally accepted accounting principles) are the complex accounting principles which was made over the basic concepts as mentioned below:

  • Accrual concept
  • Going concern concept
  • Business entity concept
  • Monetary unit assumption
  • Time period principle
  • Revenue recognition principle
  • Full disclosure principle
  • Historical cost concept
  • Matching principle
  • Relevance and reliability
  • Materiality concept
  • Substance over form
  • Prudence concept
  • Understandability concept
  • Comparability concept
  • Consistency concept
Contents
Financial Ratios Accounting Cycle Accounting Principles Accrual Concept Business Entity Concept Going Concern Concept Monetary Unit Assumption Time Period Principle Revenue Recognition Principle Full Disclosure Principle Historical Cost Concept Matching Principle Relevance and Reliability Materiality Concept Substance over Form Prudence Concept Understandability Concept Consistency Concept Comparability Concept Financial Accounting Basics Financial Statements Reporting Bad Debts Current Assets Long-term Assets Voucher System Partnership Depreciation Work Sheet - 10 Column Work Sheet Difference Between Reserve and Fund Accounting for Leases Capital reduction and reconstruction Absorption of Company Amalgamation Accounting for Installment Sales Basis of Recording Profit and Loss Branch Accounting Construction Contracts Revenue Recognition Accounting for Groups Financial Analysis Events After the Balance Sheet Date Deferred Tax Cost Accounting Activity Based Costing (ABC) Throughput Accounting Relevant Cost Break Even Analysis Standard Costing Inventory Management Payroll Accounting Royalty Accounting Statistics Master Budget Salary Income Microsoft Excel Tutorial Other Topics Share or Stock Valuation Model Financial Management Topics Kinds of Endorsement Letter of Credit, Kinds and Its Advantages/ Utilities Modern Functions of a Commercial Banks Difference Between Secured And Unsecured Loan Excel conditional formatting red if negative green if positive How to Remove Extra Spaces in Excel Result Card or Result Sheet Creation Using Excel