Taxes

Prudence Concept of Accounting

Historical cost concept

The historical cost concept (also known as cost principle of accounting) states that the assets and liabilities of a business should be

Substance over form concept

The concept substance over form means that the transactions recorded in the financial statements must reflect their economic substance

What is the Distinction Between Cash vs. Accrual?

One of the most essential decisions a proprietor will need to make concerning the set-up of a business is the kind of accounting...

How to Get Familiar with the Concept of Depreciation

Depreciation refers to two very different but related concepts: 1. The decrease in value of assets (fair value depreciation) 2. The...