THE IMPACT OF ACCOUNTING CONCEPTS AND CONVENTIONS IN FINANCIAL ANALYSIS OF AN ENTERPRISE

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Accounting could become an intelligible and commonly understood language if itis based on generally accepted accounting principles. Hence, one must be familiarwith the accounting principles, concepts and conventions behind financialstatements to understand and use them properly. Therefore, concepts andconventions in accounting are necessary because it connotes necessaryassumptions and ideas which are fundamental to accounting practice as a guide tothe preparation of accounting statements. The findings of this research confirmedthat if any accountant uses these concepts and conventions in his professional workmoney, energy and time will be conserved and at the same time effective servicewill be provided for the organization. It also offers an appraisal of variousaccounting concepts and concluded that accounting concepts or conventions arelikely to be of relatively different importance to different users of financialstatementsINTRODUCTIONOne of the most important units in an Organization be it private or public is thefinancial department. This unit is responsible for keeping the financial records ofthe Organization. Therefore bookkeeping and accounting records processes needssome guidelines to be followed so as to ensure consistency, uniformity in thepreparation of accounting and financial statement.As a result, this presentation centered on the implications of accounting conceptsand conventions in a financial analysis of an Organization

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THE IMPACT OF ACCOUNTING CONCEPTS AND CONVENTIONS IN FINANCIAL ANALYSIS OF AN ENTERPRISE

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