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    Accounting Is A Process of Recording

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    Sumaiya Amrin
    Accounting involves recording, classifying, summarizing, analyzing, and communicating financial transactions according to generally accepted accounting principles (GAAP). The five basic principles of accounting are revenue recognition, cost, matching, full disclosure, and objectivity. The 10 principles of GAAP are regularity, consistency, sincerity, permanence of method, non-compensation, prudence, continuity, periodicity, full disclosure, and utmost good faith.

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    Accounting Is A Process of Recording

    Uploaded by

    Sumaiya Amrin
    9 views4 pages
    Accounting involves recording, classifying, summarizing, analyzing, and communicating financial transactions according to generally accepted accounting principles (GAAP). The five basic principles of accounting are revenue recognition, cost, matching, full disclosure, and objectivity. The 10 principles of GAAP are regularity, consistency, sincerity, permanence of method, non-compensation, prudence, continuity, periodicity, full disclosure, and utmost good faith.

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    Accounting is a process of recording

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    Accounting involves recording, classifying, summarizing, analyzing, and communicating financial transactions according to generally accepted accounting principles (GAAP). The five basic principles of accounting are revenue recognition, cost, matching, full disclosure, and objectivity. The 10 principles of GAAP are regularity, consistency, sincerity, permanence of method, non-compensation, prudence, continuity, periodicity, full disclosure, and utmost good faith.

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    9 views4 pages

    Accounting Is A Process of Recording

    Uploaded by

    Sumaiya Amrin
    Accounting involves recording, classifying, summarizing, analyzing, and communicating financial transactions according to generally accepted accounting principles (GAAP). The five basic principles of accounting are revenue recognition, cost, matching, full disclosure, and objectivity. The 10 principles of GAAP are regularity, consistency, sincerity, permanence of method, non-compensation, prudence, continuity, periodicity, full disclosure, and utmost good faith.

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    Accounting is a process of recording, classifying, summarizing,

    analyzing and interpreting the financial transactions and communicating


    the result thereof to the users of such information.
    Generally accepted accounting principles (GAAP) refer to a common
    set of accounting principles, standards, and procedures issued by
    the Financial Accounting Standards Board (FASB).

    What are the 5 basic principles of accounting?


     Revenue Recognition Principle. When you are recording information
    about your business, you need to consider the revenue recognition
    principle. ...
     Cost Principle. ...
     Matching Principle. ...
     Full Disclosure Principle. ...
     Objectivity Principle.

    What Are the 10 Principles of GAAP?


    There are ten principles that can help you understand the
    mission of the GAAP standards and rules.

    1. Principle of Regularity

    2. Principle of Consistency

    3. Principle of Sincerity

    4. Principle of Permanence of Method

    5. Principle of Non-Compensation

    6. Principle of Prudence
    7. Principle of Continuity

    8. Principle of Periodicity

    9. Principle of Full Disclosure

    10. Principle of Utmost Good Faith

    Accounting is a process of recording, classifying, summarizing,


    analyzing and interpreting the financial transactions and communicating
    the result thereof to the users of such information.
    The journal is the primary and basic book for recording daily
    transactions. Main objectives of preparing journal: To make permanent
    and systematic record of all the financial transactions.
    A ledger is a book or collection of accounts in
    which account transactions are recorded. The ledger is important
    because it helps you monitor and control a business's financial
    operations.

    a trial balance is a list of all ledger accounts and their balances at a


    point in time. The general purpose of producing a trial balance is to
    ensure the entries in a company's bookkeeping system are
    mathematically correct.
    A worksheet is a multiple column form used in adjustment process and
    preparing financial statement. The main objective of the worksheet is to
    verify the accuracy of accounting information before the
    preparation of financial statements.
    Del Credere Commission:
    This is additional commission payable to the consignee for taking over
    additional responsibility of collecting money from customers.
    The dispatch or transfer of goods to an agent for the purpose of sale on
    behalf and risk of principal is known as consignment.

    Financial statements are written records that convey the business


    activities and the financial performance of a company. There are four
    main financial statements. They are: (1) balance sheets; (2) income
    statements; (3) cash flow statements; and (4) statements of shareholders'
    equity.
    The general purpose of the financial statements is to provide information
    about the results of operations, financial position, and cash flows of an
    organization
    The income statement gives your company a picture of what the
    business performance has been during a given period, while the
    balance sheet gives you a snapshot of the company's assets and liabilities
    at a specific point in time.

    Normal loss means that loss which is inherent in the processing


    operations. It can be expected or anticipated in advance. For instance, if
    a consignment of fruits is sent, some of them will be destroyed in
    loading and unloading while some fruits will not be in a state to be sold.
    Abnormal loss in cost accounting is the loss that occurs over and above
    normal loss. Examples of such losses are loss by theft or loss by fire,
    earthquake, flood, accidents, war, loss in transit,
    Accounting cycle is a step-by-step process of recording, classification
    and summarization of economic transactions of a business.

    Accounts receivables are the money owed to the company by the


    customers
    Accounts payable (AP) represents the amount that a company owes to
    its creditors and suppliers

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