Accounting Concepts

a- Accounting:
is the art of recording, classifying, reporting, and
interpreting the financial data of an organization.
b- Accounting:
is a social science has its concepts and principles
that used in applying the accounting cycle to achieve
accounting functions and objectives.
Accounting Cycle:
consists of the steps involved in handling business
transactions completed in an accounting period, starting with
analyzing and recording the transactions in a journal and
ending with preparing a post – closing trail balance.
No entry
Is this
Accounting transaction
Accumulation and
(posting &preparing trail balance)
Analysis the
a journal
-Journalizing: Recording transactions in a Journal.
-Posting: From Journal to a ledger.
-Summarizing: Trail Balance.
‫علم المحاسبة‬
‫المبادى المحاسبية‬
‫الدورة المحاسبية‬
‫المفاهيم المحاسبية‬
‫‪Accounting Principles‬‬
‫‪Accounting cycle‬‬
‫‪Accounting concepts‬‬
‫تصنيف الحسابات‬
‫غير محدد‬
‫حقوق الملكية‬
‫راس المال‬
‫‪Classification of accounts‬‬
‫‪Owner’s equity‬‬
‫‪Winding up‬‬
Accounting Concepts:
refer to the nature of the economic environment in
which accounting operates, and these concepts are essential
to the understanding of accounting principles, The most
significant of these concepts ( assumptions ) are:
a The Entity Concept.
b- The Going – concern Concept.
c- The Unit of measurement Concept.
d- The periodicity Concept.
This concept conceived every business to be
a separate entity and distinct from it’s owner or owners and
from every other business.
So The entity it has it’s Assets, Liabilities,
Expenses and Revenues.
In the final you can define the Accounting Entity as
any legal or economic unit that has control over resources,
accepts responsibilities for making and carring out
commitments, and conducts economic activity. Such an
accounting entity may be either and individual, a
partnership, or a legal corporation, or a consolidated group.
This concept means that Accounting entity
will continue in operation long enough to carry out
the cost of its existing commitments ( the life is
indefinite ).
This concept means:
The purchasing power for monetary unite is being
stable, So the unite of measure used in accounting dose not
In practically this is not accepted in accounting,
because there are Inflation, and Recession in Economic.
This concept means:
The life of a business is divided in to equal periods,
such as months, or years.
This concept allow for comparison of revenues,
expenses, and income earned by the business in one period,
with the same in another periods.
Principles of Accounting:
It’s as a guide in recording and reporting the
financial affairs, and activities of a business.
This Principles called GAAP ( Generally Accepted
Accounting Principles )
(1) Cost Principle
(2) Objectivity Principle
(3) Realization Principle
(4) Matching Principle
(5) Principle Of Conservatism
(6) Consistency
(7) Full Disclosure Principle
(8) Materiality Principle
1- Using the accounting procedures from year
to year means:
(1) Cost Principle
(2) Objectivity Principle
(3) Matching Principle
(4) Consistency Principle.
2-the principle that get expenses be matched
with revenues is the:
(1) Objectivity Principle
(2) Matching Principle
(3) Cost Principle
(4) Full Disclosure Principle
3- All material information should be disclosed
in the financial statements to make these
statements clear
and understandable
for the readers is:
(1) Matching Principle
(2) Full Disclosure Principle
(3) Cost Principle
(4) Objectivity Principle
4- Accouting includes:
(1) Measurement.
(2) Recording.
(3) Reporting.
(4) All of the above.
1- Name the accounting concepts and explain
four of them.
2- Name the accounting Principles and explain
four of them.
3- Define The Accounting.
4- Explain The Accounting Cycle.
5- GAAP reduction of:--------------------6- Accounting in arabic mean’s:----------
The end
Chapter (1)