Accounting Concepts Learning objectives: Explain important accounting principles. The term concepts includes those basic assumptions or conditions upon which accounting is based. The following are the important accounting concepts: Business Entity Concept Going Concern Concept Money Measurement Concept Cost Concept Duel Aspect Concept Accounting
Business Entity Concept
In accounting a business or an organization and its owners as two distinctly recognizable parties. This idea is called business entity concept. It means that personal transactions of owners are treated distinctly from persons of the business.