Author: Editor

What is Cost Concept of Accounting? The cost concept of accounting states that all assets are recorded at cost in the books of account. That is assets are recorded at the cost that is paid to acquire them rather than their...

Convention of Materiality Convention of materiality states that items of small significance need not to be given strict theoretically correct treatment. There are many events in business which are insignificant in nature....

What is Activity Based Costing? Activity based costing is the costing approach that identifies all the activities in an organisation, assigns cost and resources to each and every activity. ABC attempts to provide a better model...

What is Accounting Period Concept? The Accounting Period Concept states that accounting activities period should be divided into smaller intervals so that performance of the business can be measured. In order to report the...

What Exactly Is Accounting Cycle? An accounting practice indicates that the bookkeeping procedure that includes recording, classifying, summarizing, analyzing and distributing of the economic details.The bookkeeping procedure...