Accounting concepts

• What is the going concern concept in accounting?

  Business will operate next year
• Why is the consistency concept important in accounting?

  It allows understanding of business progress
• How does the prudence concept affect financial statements?

  Statements are prepared cautiously
• What does the matching/accruals concept entail?

  Income matched with expenses
• What is the historical cost concept in accounting?

  Assets based on acquisition cost
• What does the materiality concept imply in accounting?

  Don't focus on immaterial items
• What is the money measurement concept in accounting?

  Record transactions expressed monetarily
• What does the business entity concept state?

  Business and owner are different entities
• What is the dual aspect concept in accounting?

  Both credit and debit are recorded