CONCEPTS OF ACCOUNTING

Concepts of Accounting

Concepts of Accounting

The concepts of revenues and expenses are very important in the field of Accounting. With regard to Revenues and Expenditure transactions, they reflect the movement of funds, not the means. Therefore, revenues and expenditure transactions appear in the account within their prescribed period. These boundaries specifies the duration of the processes to be addressed in each regular report. Such a view is consistent with the opinion of the American School of the twentieth century. In particular, the head of Accounting in America, W. E. Paton (1889 - 1991) defined revenue as a dynamic process ...