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
Accounting is basically related with past occasions and it needs consistency and comparability that is why it needs the accounting transactions to be recorded at their historical costs. This is called historical cost concept.