2. What are the various concepts of Accounting.

Question

Accepted Answer

The various concepts of Accounting include accruals, consistency, materiality, prudence, and going concern.

Accruals: Recognizing revenues and expenses when they are incurred, not when they are received or paid.
Consistency: Applying the same accounting methods and principles consistently over time.
Materiality: Only recording information that is significant or material to the financial statements.
Prudence: Exercising caution and not overstating assets or revenues, but recognizing all liabilities and expenses.
Going Concern: Assuming that the business will continue to operate indefinitely unless there is evidence to the contrary.

Accepted Answer

Matching Concept, Accrual Concept, Business Entity Concept.

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