This document discusses key accounting concepts that define the assumptions and basis for preparing financial statements. It outlines 10 core concepts: business entity, money measurement, going concern, accounting period, accounting cost, dual aspect, matching, realization, and accrual. It provides examples to illustrate concepts like business entity that treats a business and owner as separate entities, and accounting cost that records assets at original purchase price. The document also briefly defines accounting conventions like consistency, conservatism, materiality and full disclosure.