Category Archives: Accounting

Accounting Concepts Definitions Part : 8 ( Prudence Concept )

Accounting Concepts Definitions Part : 8 Prudence Concept Accounting student and haven’t heard about prudence concept would be the most surprising thing to say. Why? The simple reason is simply because this is involved in every accounting decision, big or small. Now, before going to how this is accompanied we should take a look what […]

Accounting Concepts Definitions Part : 7 (Substance over form)

Accounting Concepts Definitions Part : 7 Substance over form As you have already learned about other forms and norms of recording an entity’s accounting information this is a necessary addition to that palette. Every reason is existent here for this to be added in your knowledge base. Now, what should you expect from this one? […]

Accounting Concepts Definitions Part : 6 ( Faithful representation concept )

Accounting Concepts Definitions Part : 6 Faithful Representation Financial reporting needs the accounts to show a picture that is presented in a form which is fitting to the guidelines and well documented. Being stated, this notion creates a wide range of confusion; because, the reporting should be identified in a way that will be believed […]

Depletion of Goodwill : The Real Deal

Depletion of Goodwill As you have already read the first installment about goodwill, it is time to dig a little deeper. Now, you will get a look at the functional areas. Here, you will get to learn- How goodwill is depleted Why goodwill should be depleted What will happen if the depletion work is not […]

Goodwill Definition ? What It Is And How It Is Recognized In Accounting And Finance ?

Goodwill Definition ?                      For long we have heard that term “Goodwill” into usage for different purposes. It is widely seen to be used in all of business studies categories like-marketing, finance, accounting and several other fields. What is needed to be seen though the difference amongst the usages in different fields. Let’s check them […]

Accounting Concepts Definitions Part : 3 ( Money Measurement Concept ,Reliability Concept )

accounting Concepts

Money measurement concept and Reliability Concept 4. Money Measurement Concept Accounting concept stands on 4 basic ones and money measurement concept is one of them. money measurement concept state- “ Any transaction which can be measured in monetary value and are relevant to business transactions, will be recorded and anything otherwise will be left out of the […]

Accounting Concepts Definitions Part : 2 ( The Relevance Concept )

3. The Relevance Concept Accounting concepts have different alleys. You have already been introduced to the first two and now time to dive deep. [Remember that the topic (Accounting concepts) in discussion here is not merely one concept or, a collection of some and solely so. But, it is based on something different. Here you […]

Accounting Concepts Definitions Part : 1 (The Going Concern concept, Accounting Period concept)

Accounting Concepts – What are they? Every accounting student must have felt the same in their primary stages and that’s because all the roar about accounting concepts and the apparent failure to learn them effectively. For now feel free, because all your confusions and fears about such stuff are going to be blown apart and […]

Accounting Definition: What Is Accounting?

Accounting Definition : What is accounting? Any student of accounting faces the perennial problem and that is define his/ her subject to the fullest. Many may ask why? My simple answer to that- because of time. Time has changed the focus of this field and also expanded the field to the point of getting user […]