Read on: Accounting Conventions

Accounting conventions

Accounting conventions determine the rules which are applied to accounting procedures. Accounting conventions are constantly being adapted to meet the changing demands of business, and at any point in time there may be more than one accepted way of treating a particular class of transaction. A thorough knowledge of these conventions is necessary for a complete understanding of the data contained in financial statements.

Accounting procedures

Recording is the mechanical process by which financial transactions are systematically placed in accounting... see: Accounting Conventions