Posted inBasics
Posted inBasics
Financial Accounting – Journal
“The process of recording a transaction in a journal is called journalizing the transactions.” ---Meigs…
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Accounting – Systems
There are two systems of accounting followed - ● Single Entry System ● Double Entry System Single…
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Accounting – Classification of Accounts
It is necessary to know the classification of accounts and their treatment in double entry…
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Conservation or Prudence
It is a policy of playing safe. For future events, profits are not anticipated, but…
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Convention of Materiality
If the disclosure or non-disclosure of an information might influence the decision of the users…
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Convention of Disclosure
The Companies Act, 1956, prescribed a format in which financial statements must be prepared. Every…
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Convention of Consistency
To compare the results of different years, it is necessary that accounting rules, principles, conventions…
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Objective Evidence Concept
According to the Objective Evidence concept, every financial entry should be supported by some objective…
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Accrual Concept
As stated above in the matching concept, the revenue generated in the accounting period is…
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Matching Concept
Matching concept is based on the accounting period concept. The expenditures of a firm for…