Accounting assumption or concept refer to necessary assumptions or conditions on which the accounting system is based. Assumptions provide a foundation for the accounting process.
1.Accounting entity concept Accounting entity concept assumed that business unit is business unit is distinct and completely separate from the owners.
2.Money measurement concept In this concept, transactions that can be measured in terms of money only are recorded in the books of accounts
3.Going concern concept Under this concept the business unit is assumed to have an indefinite life. It is States that the business organisation is treated as a continuing one for long time.
4.Accounting period concept The period of interval for which Account is kept for ascertaining the result of business during the period is called Accounting period
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