Topic: ACCOUNTING CONCEPTS

Group: AAMK1, AAAC1, AABA11, Evening Students

Due date: 4th May, 2020

INTRODUCTION

What you have been reading and recording so far has been concerned with the recording of financial transaction in the books. Such recordings have been based on certain assumptions. These assumptions are known as concepts of accounting.

ASSIGNMENT

1.Write brief notes to explain that is meant by Subjectivity and Objectivity.

2.The following are underlying accounting concepts. Explain, in your own words, your

understanding of the following:

a) The historical cost concept

b) The money measurement concept

c) The business entity concept

d) The dual aspect concept

e) The time interval concept

3.The following are fundamental accounting concepts. Explain, in your own words, your

understanding of the following:

a) Going concern concept

b) Consistency concept

c) Prudence concept

d) The accruals concept