Question

General notion or abstract ideas on which accounting is based is known as __________ .

• A. Accounting Concepts
• B. Accounting Standards
• C. Accounting Ethics
• D. None of the above

Answer 1

The correct option is A Accounting Concepts

The term concept refers to the necessary assumptions and ideas which are fundamental to accounting practice, and the term contravention connotes customs or traditions as a guide to the preparation of accounting standards. The accounting concepts are referred to as the fundamental ideas or basic assumptions underlying the theory and practice of financial accounting and are broad working rules for accounting activities and developed by the accounting profession.