Generally Accepted accounting Principles

Asha SharmaFaculty: Mgt.

GAAPBusiness Entity Concept: A business entity is said to be separate

distinct from its owners.Record those transactions which relate

only to the business.All transactions are recorded from the

point of the business itself as an entity.

Cont………..Money Measurement Concept:Money is the only factor common to all

business transaction.Only those transactions and events are to be

recorded in the books of accounts which can be expressed in terms of money

Going Concern Concept: The enterprise will continue to operate for an indefinitely long period in future.

Cost Concept: An asset is worth the price paid for or cost incurred to acquire it.

Cont……….Realization Concept: Any change in the

value of an asset should only be recognized at the firm realizes or disposes of the asset.

Accrual ConceptAccounting Period ConceptMatching conceptDual aspect ConceptConsistency Concept