What are the 5 accounting assumptions?

5 Key Accounting Assumptions: The Consistency Assumption. The Going Concern Assumption. The Time Period Assumption. The Reliability Assumption. The Economic Entity Assumption. #BBD0E0 »

What are the 7 principles of accounting?

Generally Accepted Accounting Principles (GAAP): Accrual principle. Conservatism principle. Consistency principle. Cost principle. Economic entity principle. Full disclosure principle. Going concern principle. Matching principle.

Course Content

Introduction to Fundametals of Accounting and Bookkeeping

5m 51s

How to use LearnVern

3m 20s

Introduction to Accounting

17m 57s

Various Accounting Concepts

11m 34s

Various Terminologies in Accounting

11m 45s

Assignment : Basic Accounting

1m 1s

Assignment : Basic Accounting

1m 17s

Quiz : Basic Accounting

Financial Transactions in Accounting

9m 58s

What are Books of Account

11m 54s

Assignment : Starting Point of Accounting

Quiz : Starting Point of Accounting

Fundamental Principles of Accounting

5m 45s

Accounting Assumptions

14m 30s

Ledger & Accounting Methods

16m

Assignment : Fundamental Accounting Principle

39s

Assignment : Fundamental Accounting Principles

42s

Quiz : Fundamental Accounting Principle

Steps of Bookkeeping Process Part-1

12m 45s

Steps of Bookkeeping Process Part-2

17m 7s

Assignment : Steps of Bookkeeping Process

39s

Quiz : Steps of Bookkeeping Process

Importance of Bookkeeping Process

15m 39s

What are Fixed Assets

12m 16s

Assignment : Importance of Bookkeeping

48s

Assignment : Importance of Bookkeeping

45s

Quiz : Importance of Bookkeeping

What is Bank Reconciliation

16m 1s

Example of Bank Reconciliation Statement (BRS)

13m 59s

Assignment : Bank Reconciliation

1m 7s

Quiz : Bank Reconciliation

Journal Entry in Accounting

17m 44s

Cases where Journal Entry is required

16m 19s

Assignment : Journal Entry

1m 44s

Quiz : Journal Entry

Introduction to Payroll

15m 6s

Transactions with Payroll

13m 45s

Assignment : Payroll Management

40s

Quiz : Payroll

Financial Statements

13m 6s

Financial Statements with Example

15m 57s

Assignment : Financial Statements

1m 7s

Quiz : Financial Statements

Course Summary

2m 8s

Interview Question in Fundamentals Of Accounting And Bookkeeping

4m 20s

Career Guideline

2m 9s

Accounting Assumptions

Fundamentals of Accounting And Bookkeeping Fundamental Accounting Principle

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Discussion

Course Content

Introduction to Fundametals of Accounting and Bookkeeping

5m 51s

How to use LearnVern

3m 20s

Introduction to Accounting

17m 57s

Various Accounting Concepts

11m 34s

Various Terminologies in Accounting

11m 45s

Assignment : Basic Accounting

1m 1s

Assignment : Basic Accounting

1m 17s

Financial Transactions in Accounting

9m 58s

What are Books of Account

11m 54s

Assignment : Starting Point of Accounting

Fundamental Principles of Accounting

5m 45s

Accounting Assumptions

14m 30s

Ledger & Accounting Methods

16m

Assignment : Fundamental Accounting Principle

39s

Assignment : Fundamental Accounting Principles

42s

Steps of Bookkeeping Process Part-1

12m 45s

Steps of Bookkeeping Process Part-2

17m 7s

Assignment : Steps of Bookkeeping Process

39s

Importance of Bookkeeping Process

15m 39s

What are Fixed Assets

12m 16s

Assignment : Importance of Bookkeeping

48s

Assignment : Importance of Bookkeeping

45s

What is Bank Reconciliation

16m 1s

Example of Bank Reconciliation Statement (BRS)

13m 59s

Assignment : Bank Reconciliation

1m 7s

Journal Entry in Accounting

17m 44s

Cases where Journal Entry is required

16m 19s

Assignment : Journal Entry

1m 44s

Introduction to Payroll

15m 6s

Transactions with Payroll

13m 45s

Assignment : Payroll Management

40s

Financial Statements

13m 6s

Financial Statements with Example

15m 57s

Assignment : Financial Statements

1m 7s

Course Summary

2m 8s

Interview Question in Fundamentals Of Accounting And Bookkeeping

4m 20s

Career Guideline

2m 9s

FAQs

5 Key Accounting Assumptions:

The Consistency Assumption.
The Going Concern Assumption.
The Time Period Assumption.
The Reliability Assumption.
The Economic Entity Assumption.

#BBD0E0 »

Generally Accepted Accounting Principles (GAAP):

Accrual principle.
Conservatism principle.
Consistency principle.
Cost principle.
Economic entity principle.
Full disclosure principle.
Going concern principle.
Matching principle.

In accounting, it is important to understand the assumptions that are made when certain transactions have been recorded in the financial statements. These assumptions are usually stated in a footnote to the financial statements. They are vital for understanding how the company's assets and liabilities may change over time, as well as other pertinent information on how an accounting equation works.

Accounting is a set of principles, methods and procedures for recording, communicating and analyzing financial information. There are many fundamental assumptions that managers must make, like the cost of capital, the goodwill value in a business, the time value of money and more. However, certain accounting principles are not taken into account but they still impact the way accounting is done.

The accounting entity concept is used to identify asset ownership and liability obligations, as well as the profitability of a particular set of economic activities.