What is besic concept in account

Question

Accepted Answer

The basic concept in accounting is the double-entry system, which involves recording every transaction in two accounts: debit and credit.

Double-entry system is the foundation of accounting
Every transaction is recorded in two accounts: debit and credit
Debit refers to the left side of an account and credit refers to the right side
Debit and credit must always balance
Examples: recording a sale, paying rent, receiving payment from a customer

Accepted Answer

Business entity concept: The business and its owner are separate entities for financial transactions. 
 
Money measurement concept: Only business dealings that can be expressed in monetary terms are documented in accounting. 
 
Dual aspect concept: For every account credit, there is a matching account debit. 
 
Going concern concept: A business is expected to continue operating for a reasonable amount of time. 
 
Cost concept: Fixed assets are recorded based on their initial cost in the first accounting year. 
 
Accounting year concept: A business chooses a specific period to complete an accounting cycle, such as monthly, quarterly, or annually. 
 
Consistency: The same method is used to maintain records for future endeavors. 
 
Substance-over-form: The economic substance of a transaction is more important than its legal form. 
 
Cash basis: Finances are recorded when money is exchanged. 
 
Accrual basis: Finances are recorded when the transaction occurs, regardless of whether cash has been exchanged. 
 
Accounting concepts and principles are essential for financial reporting and decision-making.

Accepted Answer

The basic concept is

Double entry system.

Accepted Answer

Accounting concepts are the basic elements of accounting. These can be topics, terms or theories that accountants apply to forms of money, transactions and economic functions. Accountants use accounting concepts to understand and explain a business's operations, cash flows and financial performance.

What is besic concept in account

Top Wipro Accountant interview questions & answers

Popular interview questions of Accountant

Top HR questions asked in Wipro Accountant