Question

Basic assumptions or conditions upon which the science of accounting is based __________________.

• A. Accounting convention
• B. Accounting concepts
• C. Accounting principles
• D. None of these

Answer 1

The correct option is B Accounting concepts

Accounting is based on certain concepts and conventions which are called as generally accepted accounting principles. On the basis of these principles, whole accounting function is performed. These can be classified as:

Concepts:

1) Separate Entity Concept

2) Money measurement Concept

3) Periodicity Concept

4) Dual Aspect Concept

5) Going Concern Concept

6) Cost Concept

7) Realization Concept

8) Matching Concept