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Home > QFINANCE Dictionary > Definition of accounting concept

Definition of

accounting concept

Accounting

accepted basis for preparing accounts any of the general assumptions on which accounts are prepared. The main concepts are: that the business is a going concern; that revenue and costs are noted when they are incurred and not when cash is received or paid; that the present accounts are drawn up following the same principles as the previous accounts; and that the revenue or costs are only recorded if it is certain that they will be received or incurred.

Recommended Further Reading (Term count)
  • The Essence of Financial Management
    David R. Myddelton (1995)
    Useful as a reference for managers wanting to improve their knowledge and skills in financial management. Examines the current issues and topics of financial management and corporate finance. Takes a practical approach to the subject, showing how to implement the concepts and techniques discussed.
  • Financial Accounting and Reporting
    Barry Elliott and Jamie Elliott (16th ed 2013, originally 1993)
    Offers clear and well-structured analysis of the main issues in financial accounting and reporting. Includes extensive coverage of International Accounting Standards (IASs) and International Financial Reporting Standards (IFRSs), and uses the latest International Accounting Standards as a framework. Examines the underlying tension between theory and practice, and analyzes the use of company accounts.

Definitions of ’accounting concept’ and meaning of ’accounting concept’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’accounting concept’ and other financial terms with our online QFINANCE Financial Dictionary.

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