Accounting Conventions
1. Materiality
An accountant should disclose all the material facts and should ignore insignificant details. Accounting records should consist only of such events as are significant from the point of view of income determination
2. Consistency
Accounting procedures or practices should remain the same(consistent) from one year to another.
3. Conservatism
An accountant should be conservative and prudent. Profits are not to be expected and provision should be made to encounter losses. Valuing stock at Cost Price or Market Price whichever is lower, and creating provision for doubtful debts are the examples of applications of the principle of conservatism
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