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Convention of Materiality
If the disclosure or non-disclosure of an information might influence the decision of the users…
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Convention of Disclosure
The Companies Act, 1956, prescribed a format in which financial statements must be prepared. Every…
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Convention of Consistency
To compare the results of different years, it is necessary that accounting rules, principles, conventions…
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Objective Evidence Concept
According to the Objective Evidence concept, every financial entry should be supported by some objective…
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Accrual Concept
As stated above in the matching concept, the revenue generated in the accounting period is…
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An Overview of Contracts and Why They are Important to Business and Society
Contracts govern all transactions whether they are between firms or between firms and private individuals.…
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Need for a Theory of Accounting to Improve the Accounting Profession
Creative Accounting and the Need for a Theory of Accounting The rise of “creative accounting” practices, an…
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Matching Concept
Matching concept is based on the accounting period concept. The expenditures of a firm for…
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Need for a Uniform and Common Theory of Accounting
The frequent attempts by experts and professionals on having a “theory” that would guide accountants…
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Working Capital Cycle
Generation and disbursement of cash is carried out in the manner depicted by the following…