Question

What is done as per the basic concepts of accounts?

• A. Book keeping
• B. Balancing
• C. Casting
• D. None of the above

Answer 1

The correct option is A Book keeping

There are various accounting concept on which the whole accounting system is based. These are known as accounting concepts and conventions. Book keeping is done on the basis of these accounting concept. Main concepts are:

1) Separate Entity Concept

2) Going Concern Concept

3) Periodicity Concept

4) Cost Concept

5) Matching Concept

6) Revenue Recognition Concept

7) Money Measurement Concept

8) Dual Aspect Concept.