Page 29 - DMGT104_FINANCIAL_ACCOUNTING

Mahesh Kumar Sarva, Lovely Professional University Unit 2: Principles of Accounting

Unit 2: Principles of Accounting Notes

CONTENTS
Objectives
Introduction

2.1 Generally Accepted Accounting Principles
2.2 Classification of Accounting Principles
2.2.1 Basic Accounting Assumptions

2.2.2 Basic Accounting Principles (Concepts)
2.2.3 The Modifying Accounting Principles (Conventions)
2.3 Capital and Revenue Items
2.3.1 Capital and Revenue Expenditures
2.3.2 Capital and Revenue Receipts

2.4 Summary
2.5 Keywords
2.6 Review Questions

2.7 Further Readings

Objectives

After studying this unit, you will be able to:

 Generally accepted accounting principles
 Accounting concepts and conventions

 Capital and revenue items
 Accounting equation and accounting cycle
Introduction

The transactions of the business enterprise are recorded in the business language, which routed
through accounting. The entire accounting system is governed by the practice of accountancy.
The accountancy is being practiced through the universal principles which are wholly led by the
concepts and conventions.

Accounting Concepts Accounting Conventions

Accounting Principles

LOVELY PROFESSIONAL UNIVERSITY 23