Materiality Principle requires that all relative items, knowledge of which might influence the decision of users of financial statements should be disclosed in the financial statements. It would be wrong to say that it is contradictory to full disclosure but is treated as an exception to full disclosure principle.

The three main assumptions we will deal with are – going concern, consistency, and accrual basis.

Accounting assumptions can be defined as a set of rules that ensures the business operations of an organization and are conducted efficiently and as per the standards defined by the FASB (Financial Accounting Standards Board) which ultimately helps in laying the groundwork for consistent, reliable and valuable …

Accounting concepts are those basis assumptions upon which basic process of accounting is based. Following are the basic accounting concepts: 1) Business Entity Concept. 2) Dual Aspect Concept. 3) Going Concern Concept.

There are four main conventions in practice in accounting: conservatism; consistency; full disclosure; and materiality.

Money is the common denominator in terms of which the exchangeability of goods and services, including labour, natural resources and capital, are measured.

Accounting concept is defined as the accounting assumptions which the accountant of a firm follows while recording business transactions and preparing final accounts. On the contrary, accounting conventions are the methods and procedure which are followed to give a true and fair view of the financial statement.