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

Abstract 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