Accounting principles and concepts

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Accounting principles and concepts

Accounting principles are the rules and guidelines that govern the preparation and presentation of financial statements.
Accounting concepts are the basic assumptions and ideas that underlie the accounting process.
Some important accounting principles include the principle of conservatism, the principle of materiality, and the principle of consistency.
Accounting concepts such as the entity concept, the going concern concept, and the matching concept help in understanding the nature of financial transactions and their impact on financial statements.

Accepted Answer

Determine income, Expenses, assets and liabilities for financial reporting.

companies implement these principles while preparing financial statements to make them consistent and complete, these properly formulated financial statements help investors in analyzing useful information

Accounting principles and concepts

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