Accounting concepts, Accounting Basics

Assignment Help:

In earlier section, we had illustrated accounting as the language of business. Along with language, accounting has several dialects. There are dissimilarities in terminology. In dealing along with the framework of accounting theory, one is confronted along with a critical problem occurring from differences in terminology. Various words and terms have been used through various writes to express and describe similar concept or notion. Hence, confusion abounds in the literature insofar as the theoretical framework is involved.

The different terms used for illustrating the fundamental concepts are: postulates, concepts, propositions, fundamental assumptions, fundamentals, underlying principles, rules, conventions, doctrines, etc. Though each of these terms is able of precise definition, common usage by the profession of accounting has served to provide them loose and overlapping meanings. Similar concept has been described through one author as a concept and through another as a convention. To acquire the other instance, the concept implied in conservatism has been labeled through one author as a modifying convention, through the other as a principle, and through yet the other as a doctrine. The broad diversity in terminology to state the fundamental framework can only serve to confuse the learner.

Without falling in the trap of this terminological maze, we will describe below, a few broadly recognized concepts and we identify all of these concepts. We do feel, though, that several of these concepts have a better claim to be termed as concepts, whereas the rest must be termed as conventions. Fundamental accounting concepts are broad, general assumptions such underlie the periodic financial accounts of business enterprises. The cause why several of these concepts must be termed as concepts is that they are fundamental assumptions and have a direct bearing on the quality of financial accounting information. The alteration of any of the fundamental concepts or postulates would change the entire nature of financial accounting.


Related Discussions:- Accounting concepts

Perdisco accounting assignment, i have an assignment fro perdisco platform ...

i have an assignment fro perdisco platform managing general entries of basic accounts will u guys be able to help with it

One of the underlying assumptions of the eoq model is that, There is a poin...

There is a point where stockholding costs are equivalent to ordering costs

Describe about chain discount, Q. Describe about chain discount? Occasi...

Q. Describe about chain discount? Occasionally the list price of a product is subject to several trade discounts this series of discounts is a chain discount. Chain discounts s

What is classified balance sheet, Q. What is classified balance sheet? ...

Q. What is classified balance sheet? The balance sheets we presented thus far have been unclassified balance sheets. An unclassified balance sheet has three major categories li

Explain inventory turnover ratio, Q. Explain Inventory turnover ratio? ...

Q. Explain Inventory turnover ratio? An important ratio for managers, investors, and creditors to consider when analyzing a company's inventory is the inventory turnover ratio.

Accounting for managers, Your individual coursework portfolio addresses the...

Your individual coursework portfolio addresses the following learning outcomes: ? Discuss the corporate governance issues and the duty of care of the directors of limited companies

Describe about accounting, Q. Describe about accounting. Why is it called ...

Q. Describe about accounting. Why is it called language of business? Accounting is known as -an art of recording, classifying and summarizing transactions and events in a si

Eco-02, define accounting.Briefly explain the accounting concepts which gui...

define accounting.Briefly explain the accounting concepts which guide the accountant at the recording stage.

Describe about assets, Q. Describe about Assets? Assets are things of w...

Q. Describe about Assets? Assets are things of worth owned by the business. They are as well called the resources of the business. Illustration includes machines, cash and buil

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd