Explain and provide examples to illustrate the following accounting concepts.a)Accrualb)Prudencec)Going concernd)Historical Cost

Financial statements, profit and loss accounts, balance sheets, cash flow statements etc, are produced on an annual basis to report to parties outside of organisation on its financial performance, financial position, and its cash flow over the period. Although the double entry system is a mechanical operation, accounting is sometimes subjective. Preparing financial statements is not absolutely automatic. Their content and layout are influenced by company law, accounting standards and accounting concepts. Accounting concepts are the fundamental principles and rules which the qualified accountants are supposed to follow when preparing financial statements. They can be used to build up an accounting framework. Some authors refer to them under a variety of other names, such as basic rules, assumptions, axioms, conventions, postulates, principles, or procedures.

There is no definitive list of fundamental accounting concepts. Different writers give different sets of concepts. FRS 18 (Fin...