Category: Accounting Principles

What is Historical Cost Principle Definition Historical cost principle refers to the cost of an item it possesses in an arm’s length transaction. In other words, historical cost is the cost paid against anything at the time of acquisition. Assets Read More …

We know that money is considered and widely accepted as a unit of account. We also aware of the fact that money is used for payment of articles we acquire in business.  Money is a ‘good’ which is also used Read More …

Going Concern Definition In view of accounting principles where an entity is taken as a third ‘artificial person’ accounting assumes that the business unit will continue its operations for an infinite or long enough time. Going concern concept is also Read More …

Definition of Business Entity Concept Business Entity Concept states that the business and the owner are two separate entities and accordingly must be treated separately. This concept is also called ‘Economic Entity Principle’ which explains that all the businesses, related Read More …