Concepts, Principles and Convention- An overview These principles, which serve as the rules for accounting for financial transactions and preparing financial statements, are known as the “Generally Accepted Accounting Principles,” or GAAP. ... Accounting principles involve both accounting concepts and accounting conventions. #ConceptsPrinciplesandConvention

ACCOUNTING PRINCIPLES Accounting principles are the rules and guidelines that companies must follow when reporting financial data. The Financial Accounting Standards Board (FASB) issues a standardized set of accounting principles in the U.S. referred to as generally accepted accounting principles (GAAP). ... Economic entity principle. #ACCOUNTINGPRINCIPLES

Area of service of Accountant Accounting and auditing These are the main services provided by accountants. Accounting services include perfecting of financial services, preparations of tax returns, track expenses and revenues, producing financial records and provide consulting to a business #AreaOfserviceofAccountant

Role of accountant in the society Consultancy services: Accountant performs an advisory function. He is largely responsible for internal reporting to the management for planning and controlling current operations, decision making on special matters and for formulating long range plans #Roleofaccountantinthesociety

Limitation of Accounting Accounting often uses historical costs to measure the values. This fails to take into consideration factors such as inflation, price changes, etc. This skews the relevance of such accounting records and information. This is one of the major limitations of accounting. #LimitationofAccounting

Relationship of Accounting with other discipline The other disciplines which accounting is increasingly seen to interact with are: Economics, Mathematics, Statistics, Law and Management. Let's discuss in brief the relationship of accounting with its related disciplines. ... It is thus to be said that both accounting and economics are connected with each other. #RelationshipofAccountingwithOtherdiscipline

Users of Accounting Information Important Points to Remember Examples of internal users are owners, managers, and employees. External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities. #UsersofAccountingInformation

Sub-field of Accounting Sub-fields of Accounting. Accounting is a fairly wide term and encompasses within it many meanings and types of recording and analyzing activities. These various types of accounting are known as subfields of accounting. They include financial accounting, management accounting, human resource accounting, etc. #SubFieldofAccounting

What is Book-Keeping Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business. Transactions include purchases, sales, receipts, and payments by an individual person or an organization/corporation. #WhatIsBookKeeping

FUNCTION OF ACCOUNTING Functions of Accounting are; control of financial policy and formation of planning, preparation of the budget, cost control, Evaluation of employees' performance, Prevention of errors and frauds. analysis of the interested parties including the management. #FUNCTIONOFACCOUNTING

Objectives of Accounting The main objectives of accounting are maintaining a complete and systematic record of all transactions and analyzing the financial position of a business. Every individual or a business concern is interested to know the results of financial transactions and their results are ascertained through the accounting process. #objectivesofaccounting

Procedural Aspects of Accounting The first two procedural stages of the process of generating financial information along with the preparation of trial balance are covered under book-keeping while the preparation of financial statements and its analysis, interpretation and also its communication to the various users are considered as accounting stages #ProceduralAspectsofAccounting

Golden Rules of Accounting The Golden Rules of Accounting Debit The Receiver, Credit The Giver. This principle is used in the case of personal accounts. ... Debit What Comes In, Credit What Goes Out. This principle is applied in case of real accounts. ... Debit All Expenses And Losses, Credit All Incomes And Gains. #GoldenRulesofAccounting