This document discusses key accounting concepts and terms: - It defines accounting as recording, classifying, and summarizing business transactions to prepare financial statements like the income statement and balance sheet. - It explains some key accounting concepts like the going concern concept, money measurement concept, matching concept, cost concept, and dual concept. - It also defines important accounting terms like assets, liabilities, tangible and intangible assets, current and long-term assets/liabilities, and wasting assets. - The document was prepared by accounting professors Prof. S.N. Gaikwad and Prof. S.R. Tajane to discuss foundational accounting principles.

1. Prof. S.N.Gaikwad
Vice Chairman
Prof.S.R. Tajane
Faculty Member

2. The art of recording classifying and
summarizing the business transactions
and finally to prepare the financial
statements i-e income statement and
balance sheet.

3. • Accounting must be related to a monetary
event or transactions
• Events or transactions must be measurable in
terms of money
• No accounting for non monetary events

4. • The basic purpose of accounting is to provide
decision makers with information useful in
making economic decisions
• The information about the profit or loss of a
business
• The information about the financial position of a
business
• Such information as to help them in future
planning and take decisions
• Tofile tax returns

6. A debtor is a company or individual who owes money. If the debt is in the form of a
loan from a financial institution, the debtor is referred to as a borrower, and if the debt
is in the form of securities – such as bonds – the debtor is referred to as an issuer.

7. A person or firm or company owes
amount to the enterprise on
account of purchase of goods and
services.

10. Assets which are purchased for long-
term use and are not likely to be
converted quickly into cash, such as
land, buildings, and equipment.

11. Cash and other assets that are
expected to be converted to cash
within a year.

12. A tangible asset is an asset that has a
physical form. Tangible assets include
both fixed assets, such as machinery,
buildings and land, and current assets,
such as inventory.

13. Nonphysical assets, such as patents,
trademarks, copyrights, goodwill and
brand recognition, are all examples of
intangible assets.

14. • Wasting assets are those assets which
have a limited life and therefore decrease
in value over time. A wasted asset is
often used until there is nothing left.
A wasting asset is also referred to as a
consumed asset. ... Some examples of
wasting assets are natural gas, oil,
timber and coal

17. • Long-term liabilities are financial obligations
of a company that become due more than one
year. In accounting, they form a section of the
balance sheet that lists liabilities not due
within the next 12 months including
debentures, loans, deferred tax liabilities and
pension obligations.

18. • Amounts due to be paid to creditors
within twelve months

73. • Accounting concept refers to the basic
assumptions and rules and principles which
work as the basis of recording of business
transactions and preparing accounts.

74. • According to this concept business is
treated as a separate entity from its
owners

75. • The going concern concept is a
fundamental principle of accounting. It
assumes that during and beyond the next
fiscal period a company will complete its
current plans, use its existing assets and
continue to meet its financial obligations.
..

76. • Money measurement concept
The concept of offsetting expenses
against revenue on the basis of causes and
effect is called the matching concept

77. • The basis idea of the cost concept is that
assets is recorded at the price paid to acquire
it and this concept is the basis for all
subsequent accounting for the assets

78. Dual concept means for every debit there is a
credit i-e all business transactions are
recorded according to debit and credit
principles
Assets = Equities

79. • According to this concept the life of the
business is divided into a series of relatively
short accounting periods of equal lengths for
studying the results shown by the business

81. Prof. Satish R. Tajane
(M.Com, GDC&A,CMA-Inter,Ph.D. Appear)
GST & Income Tax
Consultant