Principles of Accounting:

1. Accrual Principle: The accrual principle states that accounting transactions should be recorded when they occur, regardless of when the cash is exchanged. This principle ensures that revenues and expenses are recognized in the period in which they are earned or incurred, providing a more accurate representation of financial performance.
2. Going Concern Principle: The going concern principle assumes that a business will continue its operations indefinitely. It implies that financial statements are prepared under the assumption that the business will remain in operation for the foreseeable future, allowing for the proper valuation of assets and liabilities.
3. Consistency Principle: The consistency principle requires businesses to apply the same accounting methods and principles consistently over time. Consistency enhances comparability and allows users of financial statements to make meaningful comparisons across different periods.
4. Materiality Principle: The materiality principle states that financial information should be presented and disclosed in a manner that is material or significant to users. Materiality is determined based on the size, nature, and potential impact of an item on decision-making.
5. Historical Cost Principle: The historical cost principle states that assets should be recorded at their original acquisition cost, regardless of their current market value. This principle provides objectivity and verifiability to financial statements.

Accounting Concepts and Conventions:

1. Entity Concept: The entity concept recognizes that a business is a separate and distinct entity from its owners or stakeholders. It ensures that business transactions and financial information are recorded and reported separately from personal transactions of the business owner(s).
2. Money Measurement Concept: The money measurement concept implies that only transactions that can be expressed in monetary terms are recorded in accounting. Non-financial information, such as employee satisfaction or brand reputation, is not captured in financial statements.
3. Cost Concept: The cost concept states that assets are recorded at their historical cost and not their current market value. It provides a reliable and objective basis for valuing assets.
4. Dual Aspect Concept: The dual aspect concept states that every transaction has two aspects—an equal debit and credit. This concept ensures that the accounting equation (Assets = Liabilities + Equity) remains in balance.
5. Matching Concept: The matching concept requires that expenses be recognized in the same period as the revenues they help generate. It ensures that expenses are matched against the revenues they contribute to, providing a more accurate determination of profitability.
6. Conservatism Convention: The conservatism convention suggests that when faced with uncertainty, accountants should exercise caution and conservatism in recognizing gains and revenues. This convention aims to avoid overstating financial performance and assets.
7. Full Disclosure Principle: The full disclosure principle requires businesses to disclose all relevant and material information in their financial statements and accompanying notes. It ensures that users have complete and transparent information for decision-making.

These principles, concepts, and conventions provide a framework for recording, presenting, and interpreting financial information, ensuring consistency, reliability, and relevance in accounting practices.