Question

identify any two relevant accounting concept related to the business

Answer 1

Solution

The two relevent accounting concept related to the bussiness that are discussed below,

1.Separate Entity concept:-

The concept assumes that , for accounting purpose , the business enterprise and the owners have different aspects. Therefore,the business and personal transaction of its owner are separate.

2.Dual aspect Concept:-

Dual aspect is the foundation of accounting. This concepts assumes that each transaction has dual effect. I.e. it effects two accounts in their respective opposite sides.

E.g

Machinary purchased on cash has two aspects which are 1.giving cash 2. reciving machinary.these two aspect are to be recorded.