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Accounting Concepts differ from Accounting Conventions in that concepts are:
AMandatory by law, while conventions are optional
BFoundational assumptions/conditions, while conventions are customs/practical traditions
CNew developments, while conventions are old
DNumerical, while conventions are qualitative
Answer & Solution
Correct answer: B. Foundational assumptions/conditions, while conventions are customs/practical traditions
1. Per OCR: "Accounting concepts refer to the assumptions and conditions that define the parameters and constraints" + "Accounting conventions are customs and traditions associated with the practical application of accounting principles."
2. Concepts ground the theory; conventions guide practice.
3. Both together = accounting principles.
_Source: ICMAI BoS CMA Foundation Paper 2 (FFCA) — Paper2_07042026.pdf, Module 1 §1.2.2 (page 16)_