ACCOUNTING PRINCIPLES

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ACCOUNTING PRINCIPLES

GOING CONCERN PRINCIPLE

As per this principle the businessman takes assumption that business will run for a indefinite time.

ACCOUNTING PERIOD PRINCIPLES

It states that accounting should be done for a regular period of 12 months for making proper decisions and making policies

ACCOUNTING ENTITY OR BUSINESS ENTITY

Business and businessman are considered separate

Transitions of business are recorded, not of businessman

Capital is liability of business

Businessman is creditor