Fundamentals of Accounting And Bookkeeping > Fundamental Accounting Principle

Accounting Assumptions

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5 Key Accounting Assumptions:

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

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Course Content

  1. Introduction to Fundametals of Accounting and Bookkeeping
    5m 51s

  1. Introduction to Accounting
    17m 57s
  2. Various Accounting Concepts
    11m 34s
  3. Various Terminologies in Accounting
    11m 45s
  4. Assignment : Basic Accounting
    1m 1s
  5. Assignment : Basic Accounting
    1m 17s

  1. Financial Transactions in Accounting
    9m 58s
  2. What are Books of Account
    11m 54s
  3. Assignment : Starting Point of Accounting
    1m

  1. Fundamental Principles of Accounting
    5m 45s
  2. Accounting Assumptions
    14m 30s
  3. Ledger & Accounting Methods
    16m
  4. Assignment : Fundamental Accounting Principle
    39s
  5. Assignment : Fundamental Accounting Principles
    42s

  1. Steps of Bookkeeping Process Part-1
    12m 45s
  2. Steps of Bookkeeping Process Part-2
    17m 7s
  3. Assignment : Steps of Bookkeeping Process
    39s

  1. Importance of Bookkeeping Process
    15m 39s
  2. What are Fixed Assets
    12m 16s
  3. Assignment : Importance of Bookkeeping
    48s
  4. Assignment : Importance of Bookkeeping
    45s

  1. What is Bank Reconciliation
    16m 1s
  2. Example of Bank Reconciliation Statement (BRS)
    13m 59s
  3. Assignment : Bank Reconciliation
    1m 7s

  1. Journal Entry in Accounting
    17m 44s
  2. Cases where Journal Entry is required
    16m 19s
  3. Assignment : Journal Entry
    1m 44s

  1. Introduction to Payroll
    15m 6s
  2. Transactions with Payroll
    13m 45s
  3. Assignment : Payroll Management
    40s

  1. Financial Statements
    13m 6s
  2. Financial Statements with Example
    15m 57s
  3. Assignment : Financial Statements
    1m 7s

  1. Course Summary
    2m 8s

  1. Interview Question in Fundamentals Of Accounting And Bookkeeping
    4m 20s

  1. Career Guideline
    2m 9s
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