According to this concept all accounting transactions should be evidenced and supported by objective documents like vouchers, bills, letters, Pay-in-Slips, Receipts, invoices etc. This ensures transaction being recorded are free from any bias of the person recording it.
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Consistency conceptConsistency concept
Consistency concept Once a business chooses to use a specific accounting method, it should continue using it on a go-forward basis. By doing so, financial statements prepared in multiple periods
Historical Cost ConceptHistorical Cost Concept
According to this concept, all assets are recorded in the books of accounts at their purchase price, which includes cost of purchase, transportation and installation and not at its market
Going Concern AssumptionGoing Concern Assumption
Going Concern Assumption Nobody starts business with the target of winding up business in short period of time. So, this assumption is created and adopted for the processing of business transactions.