Transaction

event

The Committee on Terminology set up by the American Institute of Certified Public Accountants formulated the following definition of accounting in 1961:: Accounting

Generally Accepted Accounting Principles’ (GAAPs)

The word concept means

basis of which the accounting principles are formulated.

accounting principles

Entity concept:

Money measurement concept:

Periodicity concept /
concept of definite accounting period

Accrual concept:

Matching concept:

Revenue – Expenses =

Periodic Profit

Going Concern concept

Cost concept:

Realisation concept:

Dual aspect concept:

Conservatism:

Consistency:

An enterprise should change its accounting policy in any of the following circumstances only:

Materiality:

FUNDAMENTAL ACCOUNTING ASSUMPTIONS

CONSIDERATIONS IN DETERMINING CAPITAL AND REVENUE EXPENDITURES