Section 2
The Accounting Concept
Book
Version 3
By Boundless
By Boundless
Boundless Accounting
Accounting
by Boundless
4 concepts
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Reasons for a Conceptual Framework
A conceptual framework is a system of ideas and objectives that lead to the creation of a consistent set standards.
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Objectives of Accounting
The objective of business financial reporting is to provide information that is useful for making business and economic decisions.
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Fundamental Concepts in Accounting
In order to prepare the financial statements, it is important to adhere to certain fundamental accounting concepts.
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Importance of Recognition and Measurement
In accounting, recognition of revenues and expenses is based on the matching principle.