cash flow statement is not there in AS level.
but i do have doubts in accounting concepts....can u briefly but clearly explain to me alll the accounting concepts!
There is sooooo many concepts but i'll try to be brief as much as posssible (By the way u better refer u r book)
Business entity- Business is separate from owner. Business acts as a separate entity / individual
money measurement- Only things which could be measured using money is used in accounting records.
historic cost- goods are recorded @ cost / bought in value rather than existing value.
realisation- only the transactions which have been realised / actually happed is recorded in books.
Duality- two aspects for every transaction ( double entry) -this could not be true in exceptional cases such as suspence & control accounts !
consistancy- Consistent recording and use of transactions, which provide a meathod of comparing the advances in business.
materiality-sometimes the business may deviate from the other principals & standerds, because it might not be practical / logical to apply them in some situations. i.e only items with significant value & material for the business may be shown as seperate items in accounts.etc.
Accruals/matching- Records actual costs incurred for a business in a period , rather than the expences paid for & recieved .
Prudence - Profit is not overstated , financial accounts are neutral or fair.
going concern- all accounts are prepared with the fact in mind that the business is to stay in business for a considerable period of time.
substance over form- Practical / logical way of recording transactions , rather than the leagal or the standerd way.
thats alll i guess !!
