Accounting concepts are the generally accepted rules and assumptions that assist accountants in preparing financial statements. In layman's terms, they are the fundamental building blocks of the transactions of the business.In layman terms, they are the fundamental building blocks of the accounting system, with the primary objective of providing uniform and consistent financial …
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WhatsApp: +86 18221755073Definition: An account is a record in an accounting system that tracks the financial activities of a specific asset, liability, equity, revenue, or expense.These records increase and decrease as the business events occur throughout the accounting period. Each individual account is stored in the general ledger and used to prepare the financial statements at the end of an accounting period.
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WhatsApp: +86 18221755073Fundamentals of accounting are guiding principles to perform such tasks. Operations of a business entity over an accounting period, generally a year, are keys to prepare financial statements. A company uses accounts to measure where it stands in the economic sense. They help in decision-making as well as cost planning and assessment.
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WhatsApp: +86 18221755073The golden rules are dependent on the accurate classification of the account. Three Types of Accounts 1. Real Accounts. All assets of a firm, which are tangible or intangible, fall under the category of 'Real Accounts'. (Except debtors) Tangible real accounts are related to things that can be touched and felt physically. A few examples of ...
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