2.Accounting Conventions:

2.Accounting Conventions:

     Accounting Conventions refer to customers, traditions, usages or practices followed by accountants as guide in the preparation of financial statements. They are adopted to make the financial statements clear and meaningful.

     There are a number of accounting conventions adopted by accountants, some of the important accounting conventions are:

     1. Convention of Materiality
     2. Convention of Conservatism
     3. Convention of Consistency
     4. Convention of Full Disclosure