Accounting Principals

Accounting has been described as the means of communicating business affairs. For accounting to be universal, it should be guided by certain principles which its preparers adopt in the preparation and presentation of financial statements. Certain ground rules were initially set for financial accounting, these rules arose out of conventions. Therefore, these are also called accounting conventions or concepts.  We shall discuss here only the basic accounting concepts or conventions that are very vital to understand the process of accounting.

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