Learner's spot

                       Accounting principles  Various accounting systems and techniques are designed to meet the needs of the management. The information should be recorded and presented in such a way that management is able to arrive at right conclusions. The ultimate aim of the management is to increase profitability and losses. In order to achieve the objectives of the concerns as a whole, it is essential to prepare the accounting statement in accordance with the generally accepted principles and procedures.  The term principle refers to the role of action or conduct to be applied in accounting. Accounting principles may be defined as “those rules of conduct or procedures which are adopted by the accountants universally, while recording the accounting transactions”. The accounting principles can be classified into two categories:     ·     Accounting concepts/Assumptions: They are the assumptions on the basis of which financial            statements are prepared and con