The Basic Principles of Accounting Cherry Marler ACCT205-1203A-17, IP-1 Instructor Jeffery Bloom June 06, 2012 Abstract Accounting is used for several purposes. Investors, creditors, and individuals use accounting to see whether a business is successful or not. Managers and employees use accounting to make decisions on certain objectives. There are four main statements used in accounting: The balance sheet, income statement, the statement of retained earnings, and the statement of cash
In the business world, business accounting embraces many professional and trade skills and abilities, such as being able to gather, record, summarize and analyse financial transactions. It is studied and known that business accounting is useful in people’s everyday lives. This report is going to be about basic financial and management accounting principles and techniques used in today’s working society, with the aim to introduce how daily transactions activities are partaken in the working environment
Understanding Basic Financial Statements Companies report their financial activities in four basic financial statements under generally accepted accounting principles (GAAP). The four basic financial statements are as listed below: 1. The balance sheet shows in a tabular form, the asset, liability and owners’ equity of a company, at a particular time. The assets of a company will always equal to the sum of liabilities and owners’ equity, this is called the accounting equation. i.e Asset = liability
Explaining Basic Accounting Concepts and Business Structures University of Phoenix 11/20/2010 Accounting 537 Explaining Basic Accounting Concepts and Business Structures There are many important aspects of accounting. The generally accepted accounting principles are accounting rules set out for companies to follow to ensure all companies are on the same page business wise. Qualities of accounting are important in the decision making process of accounting. Accrual
CHAPTER 1 Financial Accounting and Accounting Standards ASSIGNMENT CLASSIFICATION TABLE | | | | |Topics |Questions |Cases | |1. |Subject matter of accounting. |1 |1
1. Differentiate broadly between financial accounting and managerial accounting. Financial accounting is the process of recording, summarizing and reporting business transactions over a period of time in order to prepare company financial reports for use by both internal and external parties such as investors and creditors. On the other hand, managerial accounting is the process of identifying, measuring, analyzing, and communicating financial information needed by management in order to plan, control
Conceptual Framework of Accounting is like a constitution for financial reporting, providing the foundation for standards. The Conceptual Framework provides structure to the process of creating financial reporting standards and ensures that standards are based
Basic Accounting Concepts and Business Structures Shannon Goshert ACC 537 July 25, 2010 Angela Rose Abstract Basic accounting concepts and business structures go hand-in-hand. Usually the business structure will determine the type of accounting concepts it will use. Generally accepted accounting principles (GAAP) are needed for effective accounting information. Basic Accounting Concepts and Business Structures Basic accounting concepts and business structures are important to a business’s
Principles and Concepts of Accounting Name Institution Introduction The major accounting principles that guide accounting practices are endorsed on the Generally Accepted Accounting Principles (GAAP). This is an international guidelines that all the companies and organizations are expected to apply in their operations. These principles are further classified into assumption and constraints. The assumption principles include business entity, going concern, monetary unit and time period assumption
Principles of GAAP and IFRIS GAAP- GAAP (generally accepted accounting principles) is a collection of commonly-followed accounting rules and standards for financial reporting. Principles regarding GAAP 1. Economic Entity Assumption The accountant keeps all of the business transactions of a sole proprietorship separate from the business owner 's personal transactions. For legal purposes, a sole proprietorship and its owner are considered to be one entity, but for accounting purposes they are considered