Accounting Conventions
Accounting Conventions are the basic guidelines for the implementation of accounting rules & regulations. Accounting conventions are very important which provide guidance to accountants to report everything which is necessary, use similar methods of calculations for same events, disclose completely before company. Accounting conventions guides the companies and accountant while preparing financial statements.
Quality of conformance is a concept to calculate the degree of completion of the product. It is the ability of the product or service to meet its specific and ultimate design. The design of the product is the interpretation of what a customer wants
The history of accounting relates back to the 14th century when Luca Picioli describes the concepts of debt, credit and bookkeeping for the very first time. No doubt people from different civilizations were using different methods for recording their transactions however it was Luca
As we know the process of accounting is that of recording monetary transactions of a business in an organized and transparent form and to prepare financial statements related to assets and liabilities and help in proper functioning of the business. With the help of
Account receivable is an integral account for the businesses that make sales on credit. A business may have thousands of account receivables from hundreds and thousands of customers. All the details of account receivables are stored in a summarized from in an external balance
A change in assets or liabilities of a business can positively or negatively affect the cash flow of the particular business. Sometimes change in assets and liabilities may result in some serious problem in the financial matters of a business. For example a change
Accounting Conventions Learning Objectives: What are accounting conventions? Explain important accounting conventions. The term “conventions” includes those customs or traditions which guide the accountants while preparing the accounting statements. The following are the important accounting conventions. Convention of Disclosure Convention of Materiality Convention of