I need explanation for all Basic Accounting Concepts with the clear examples the question is below. Accounting is a language of the business. Financial statements prepared by the accountants communicate financial information to the users of the accounts in a way that they can make an informed decision. That's why, it's very important that financial statements prepared by different organizations for different periods should be uniform. Consistency is very important across the organizations and over a period of time otherwise there will be an utter confusion. There will also not be a fair and true comparison between performances of different organizations or the performance of an organization between past and current periods. To avoid confusion and receive uniformity, accounting process is performed within the framework of GAAP (Generally Accepted Accounting Principles). GAAP describes the rules developed for the preparation of the Financial Statements. These rules are termed as conventions, principles, concepts, etc. These GAAP rules are the backbone of the accounting system. Accounting Principles are the basic assumptions and norms on which the whole accounting process is based. Apart from this, accountants also follow various Accounting Standards prescribed by the regulatory authority which provides standardization of accounting policies to be followed under specific circumstances. The terms "convention", "concepts" or "principles" are slightly different when it comes to their dictionary meanings but they are used interchangeably in the accounting theories. Accounting Principles are accounting assumptions which have been adopted by various organizations over a period of time and have a broad consensus if not universal applicability. They serve as an explanation of the current practices and as a guide for selecting the correct procedure when alternatives exist. Accounting Principles must satisfy the following conditions: 1. They should be based on real assumptions: 2. They should be simple, understandable and explanatory: 3. They must be followed consistently; 4. They should be able to reflect future predictions: 5.They should be informational for the users. Required: Let's imagine a situation where you give your books of accounts to 3 different accountants for preparing financial statements and all 3 of them came to you with the final report which shows different profits with huge variations between them. They have also presented the financial statement very different from each other. As a user of the final accounts yourself, you'll be confused that which one has done the right calculations. To avoid this confusion, a generally accepted set of rules provides unity of understanding and approach in the practice of accounting and in better presentation of the financial statements. Based on the above situation, you need to discuss all accounting concept and principles that need to be apply in order to avoid the confusion. Please provide examples for each of the concept. I need explanation for all Basic Accounting Concepts with the clear examples the question is below. Accounting is a language of the business. Financial statements prepared by the accountants communicate financial information to the users of the accounts in a way that they can make an informed decision. That's why, it's very important that financial statements prepared by different organizations for different periods should be uniform. Consistency is very important across the organizations and over a period of time otherwise there will be an utter confusion. There will also not be a fair and true comparison between performances of different organizations or the performance of an organization between past and current periods. To avoid confusion and receive uniformity, accounting process is performed within the framework of GAAP (Generally Accepted Accounting Principles). GAAP describes the rules developed for the preparation of the Financial Statements. These rules are termed as conventions, principles, concepts, etc. These GAAP rules are the backbone of the accounting system. Accounting Principles are the basic assumptions and norms on which the whole accounting process is based. Apart from this, accountants also follow various Accounting Standards prescribed by the regulatory authority which provides standardization of accounting policies to be followed under specific circumstances. The terms "convention", "concepts" or "principles" are slightly different when it comes to their dictionary meanings but they are used interchangeably in the accounting theories. Accounting Principles are accounting assumptions which have been adopted by various organizations over a period of time and have a broad consensus if not universal applicability. They serve as an explanation of the current practices and as a guide for selecting the correct procedure when alternatives exist. Accounting Principles must satisfy the following conditions: 1. They should be based on real assumptions: 2. They should be simple, understandable and explanatory: 3. They must be followed consistently; 4. They should be able to reflect future predictions: 5.They should be informational for the users. Required: Let's imagine a situation where you give your books of accounts to 3 different accountants for preparing financial statements and all 3 of them came to you with the final report which shows different profits with huge variations between them. They have also presented the financial statement very different from each other. As a user of the final accounts yourself, you'll be confused that which one has done the right calculations. To avoid this confusion, a generally accepted set of rules provides unity of understanding and approach in the practice of accounting and in better presentation of the financial statements. Based on the above situation, you need to discuss all accounting concept and principles that need to be apply in order to avoid the confusion. Please provide examples for each of the concept