... the businesses during the historical accounting year (normally one year) based on transactions summarized in accounting documents. The companies, organizations are required to carry out the accountancy for every historical accounting year, which is based on fundamental accounting concepts. There are main four concepts in accounting, such as:. Going concern concept; Accruals concept; Consistency concept; Prudence concep "Going Concern Concept"-assumes that an enterprise will continue its activities for the foreseeable future; where this is not the case, particular care will be needed in the valuation of assets, where stocks and fixed assets may not be realisable at their book values, and liabilities, where provisions may be needed for closure costs or redundancies. This concept normally only has relevance for Trading Activities. This concept is important in preparation of the Profit and Loss Account and the Balance Sheet. There are many factors which cause an enterprise to close, the two most frequent ...

See this essay or coursework document in full right now