Basic accounting concepts and business structures acc 537 financial accounting all businesses has a obligated task to prepare financial statements that shows the performance of the business at the end of a accounting period. A number of basic accounting principles have been developed through common usage they form the basis upon which modern accounting is based the best-known of these principles are as follows: accrual principle this is the concept that accounting transactions should be recorded in the accounti. Download file explaining basic accounting concepts and business structures to see previous pages the financial accounting standards board (fasb) is responsible for designing a standard, known as “the hierarchy of gaap” which explicitly details the meaning of gaap. This feature is not available right now please try again later.
Accounting basics: financial statements each is defined in statement of financial accounting concepts no 6, the structure of the owners' equity section depends on whether the entity is an. The profitable things owned by the business and are purchased or acquired for long term use by the business known as assets these are the properties claimed or owned by the business therefore, assets are the economic resources of an enterprise which can be expressed in monetary terms. This content was stolen from brainmasscom - view the original, and get the already-completed solution here please help explain the meaning of the four assumptions underlying financial accounting structure include some examples to stress the importance of the basic assumptions. Accounting refers to the systematic recording of business transactions and preparation of statements relating to assets, liabilities and functioning results of a business accounting has to follow certain fundamental rules that form the basic accounting concepts and principles.
My goal is to help you understand accounting principles by breaking down accounting concepts into everyday language, so you can understand them and learn faster– for free myaccountingcoursecom also has many examples of basic accounting events and situations for you to study. This is a great accounting tutorial for the basics of accounting for beginners the easiest way to keeps debits and credits, and assets = liabilities + equity ( accounting equation) straight. Basic accounting principles and concepts january 3, 2012 by misscpa 88 comments accounting is referred to as “the language of business” because it communicates the financial condition and performance of a business to interested users. Check out our top free essays on explaining basic accounting concepts and business structures paper to help you write your own essay. Objectives: after studying this lesson, you will be able to : y explain the term accounting concept y explain the meaning and significance of various accounting concepts : business entity, money measurement, going concern, accounting period, cost concept, duality aspect concept, realisation concept, accrual concept and matching concept.
A constructive way to summarize basic accounting concepts and business structures is to start by making an outline that includes specific concepts and then describe them in simple terms. The accounting entity concept recognizes a specific business enterprise as one accounting entity, separate and distinct from the owners, managers, and employees of that business in other words, it means that a company has its own identity set apart from its owners or anyone else. Basic accounting concepts and business structures additionally, with the different ways enterprises account for money and the distinctive business trustees, having these written standards makes all companies accountable. The basic accounting assumptions are like the pillars on which the structure of accounting is based business entity assumption according to this assumption, the business is treated as a unit or entity apart from its owners, creditors, managers, and others.
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. The business entity concept, also known as the economic entity assumption or business entity principle, states that all business entities should be accounted for separately in other words, businesses, related businesses, and the owners should be accounted for separately. The reporting concepts and accounting standards described in this preface will provide new information on the federal government's financial condition, as well as on the costs of its programs. Module - 1 basic accounting notes 17 accounting concepts accountancy in the previous lesson, you have studied the meaning and nature of business transactions and objectives of financial accounting.
Basic accounting concepts and business structures sources of generally accepted accounting principles the generally accepted accounting principles (gaap) respected in the accounting and auditing fields are prescribed by. [a] accounting is the language of business [b] transaction are recorded in quantitative terms only [c] accounting is the art of recording,classifying and summarizing. View homework help - basic accounting concepts and business structures from acc 537 at university of phoenix accounting concepts and business structures paulette adams acc/537 november 17, 2015 mr.