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Gopika Juneja, Lovely Professional University Unit 1: Basic Accounting Review

Unit 1: Basic Accounting Review Notes

CONTENTS
Objectives
Introduction
1.1 Meaning of Accounting
1.2 Process of Accounting
1.2.1 Cash System

1.2.2 Accrual System
1.2.3 Values
1.3 Accounting Principles
1.4 Accounting Concepts
1.4.1 Money Measurement Concept
1.4.2 Business Entity Concept
1.4.3 Going Concern Concept

1.4.4 Matching Concept
1.4.5 Accounting Period Concept
1.4.6 Duality or Double Entry Accounting Concept
1.4.7 Cost Concept
1.5 Accounting Conventions
1.6 Basic Accounting Terms
1.7 Summary
1.8 Keywords
1.9 Self Assessment

1.10 Review Questions
1.11 Further Readings

Objectives

After studying this unit, you will be able to:
Explain accounting principles

Describe accounting Concepts and Conventions
State the basic accounting terms.

Introduction

The main object of a business is to earn profit. Accounting is the medium of recording the
business transactions and it is considered as a language of business. After studying this unit, you
will be able to understand the concept of accounting, principles of accounting and basic accounting
terms.

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