In almost any language you'll find some rules or principles that are definite and several others are undefined. The latter is usually a matter of viewpoint or style. Accountants have various opinions, just are grammarians have various ideas. Accounting principles evolve to form the underlying basis for great accounting practice.
The following section of an online blog post points out the scenario and narrative in much more detail. Here is an clip:
"In any language there are some rules or principles that are definite and some others are indefinite. The latter are a matter of opinion or style. Accountants have different opinions, just are grammarians have different opinions. Accounting principles evolve to form the underlying basis for good accounting practice. In this article, I will try to describe the elements of good accounting practice, the fundamental accounting concepts.
Here is a list of the seven fundamental accounting concepts. What is the meaning of each?
(1) Dual Aspect Concept
(2) Money Measurement Concept
(3) Business Entity Concept
(4) Going-concern Concept
(5) Cost Concept
(6) Accrual Concept
(7) Realization Concept
Dual Aspect Concept
The fact that the total assets of a company always equal the total equities underlies what is called the dual aspect concept. Obviously, the two aspects that this concept refers to are assets and equities. The concept states that these two aspects are always equal to each other.
The dual aspect concept is the first of the seven fundamental accounting concepts. The equation that states the dual aspect concept: assets = equities or equities = liabilities + owners’ equities, therefore, another form of the dual aspect principle is: Assets = liabilities + owners’ equities.
Money Measurement Concept
Accounting records show only facts that can be expressed in monetary terms. By reducing disparate facts to monetary terms we can deal with them arithmetically.
In adding together homogenous names as different cars, bed linens, supplies, shoes, etc., it is necessary to express them in homogenous unit. For this reason, it is necessary that each of the items enumerated is measured in monetary terms or in dollars."
Accountancy practise data along with providers in the UK. Book-keeping expert services, book-keeping, income tax processing, income tax professional opinions, chartered accountancy practise together with a lot more. For comprehensive neighborhood accountancy firm professional services take a look at chartered accountant london for alot more information. Also review UK Accountancy Services
