Accounting – Accounting Concepts
We wrote about two basic concept of accounting, i.e. going concern and business entity.
https://faoblog.com/accounting-accounting-concepts-2/
https://faoblog.com/accounting-accounting-concepts-3/
https://faoblog.com/accounting-accounting-concepts-4/
The fourth basic concept is “Cost concept”. All transactions considered at cost (the value actually transacted in)
So, a transaction may actually be of a higher value, but needs to be recorded at the value it has been transacted in. This concepts restricts arbitrary values being assigned to transactions. This becomes critical in arenas where capital transactions are entered into, especially those which result in acquisition of assets. Thus this ensures that the transacted value is recorded in the books of accounts and no notional values are used.
Hence if you buy a commercial property for Rs. 4,000,000, based on your negotiation capabilities, whose market value is Rs. 5,000,000, you would record it at Rs. 4,000,000 only.
Do share this post if you like it.
——————————————————————
You want to understand how accounting translates into outsourcing?
Read our blog – https://faoblog.com/category/finance-and-outsourcing/
——————————————————————
Subscription and Guest Post:
You may subscribe to the blog from the subscription box on the opening page of the blog. We have enabled a button on the top of the first page, which will enable you share your posts. If you wish to write about any of the current streams, you can do it at https://faoblog.com/guest-post/. We will review your post and release it within 48 hours of your posting.
Good job on this article! I really like how you presented your facts and how you made it interesting and easy to understand. Thank you.
I feel this is one of the so much significant info for me. And i’m happy studying your article. But wanna remark on few general things, The site style is ideal, the articles is actually excellent. Just right process, cheers
Hello! I could have sworn I’ve been to this site before but after reading through some of the post I realized it’s new to me. Anyhow, I’m definitely glad I found it and I’ll be book-marking and checking back frequently!
Very well written post. It will be helpful to anyone who utilizes it, as well as myself. Keep up the good work – i will definitely read more posts.
Superb site you have here but I was wanting to know if you knew of any community forums that cover the same topics talked about here? I’d really like to be a part of community where I can get comments from other knowledgeable individuals that share the same interest. If you have any recommendations, please let me know. Thanks!
I have really learned result-oriented things from a blog post. Many thanks
You understand therefore significantly on the subject of this subject, made me in my opinion believe it from numerous various angles. Its like men and women are not fascinated except it’s one thing to do with Girl gaga! Your individual stuffs great. Always take care of it up!
Excellent post. I was checking continuously this blog and I’m inspired! Extremely helpful information particularly the final phase 🙂 I take care of such info a lot. I used to be looking for this certain info for a very lengthy time. Thanks and best of luck.