Accounting is based on the following concepts: Entity Concept Money measurement Concept Going concern Concept Cost Concept Conservatism Concept Dual Aspect Concept Accounting Period concept Accrual Concept Realisation concept Matching concept Materiality Concept Entity Concept For purposes of Accounting the business firm is regarded as a separate entity.Accounts are maintained for this entity as distinct from the persons who are connected with it. Money Measurement Concept Accounting is concerned with only those facts which are expressible in monetary terms. Going Concern concept Accounting is normally based on the premise that the business entity will remain a going concern for an indefinitely long period and not concern which is likely to be wound up in near future. Cost Concept Assets acquired by a business are generally recorded at their cost. Conservatism Concept Anticipate no profit but provide for all possible losses. Dual Aspect C...