Basic Accounting concepts

• Business Entity: It means Business having their own identification. Business is a kind of artificial person , so it has separate legal entity which is known as Business Entity. Further , business having separate entity than their Proprietor.

• Money Measurement: There are many activities made inside the Business out of them some activities are Accounting as a money measurement. Therefore, accounting is concerned with Money measurement.

• Going concern: In business , how many fixed assets are are purchased at present i.e. not only for this year but also for future. So , how many fixed assets are purchased during the year it should be shifted for next year by charging depreciation for the financial report. So, Accounting is concerned with Going concern.

• Cost: The payment done for fixed assets which is used in future as well, is known as Cost.
  

• Dual aspect: Each and every financial transaction at least two accounts one must be debited and other must be credited with equal mount is known as Dual aspect.