accounting concepts
The basic theoretical ideas devised to support the activity of accounting. As accounting developed largely from a practical base, it has been argued that it lacks a theoretical framework. Accountants have therefore tried to develop such a framework; although various concepts have been suggested, few have found universal agreement. However, four are deemed to be important (see
STATEMENT OF STANDARD ACCOUNTING PRACTICE
): the first, the on-going concern concept, assumes that the business is a going concern until there is evidence to the contrary, so that assets are not stated at their break-up value; the second, the
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