The Basic Concepts of Accounting Accounting Essay
Accounting definition. American Institute of Certified Public Accountants “Accounting is an art of significantly recording, classifying, and summarizing in terms of monetary transactions and events that are at least partly financial in nature, and interpreting the results thereof. American Accounting Association “The process of accounting valuation: the process of valuing a company's assets for financial reporting purposes. Various accounting valuation methods are used in preparing financial statements. This conceptualization of Accounting has necessitated changes in the way the subject is taught and assessed. This article sought to explore accounting educators' current views on assessment. Concept with two aspects: This is the basic concept of accounting. According to this concept, every business transaction has a double effect. 8. Accrual concept: The accrual concept involves recording income and expenditure of a particular accounting period, whether received, paid in cash or not. At its most basic, accounting describes the process of tracking the monetary transactions of an individual or business. . Accountants record and analyze these transactions to get an overall picture of: Dear students, Accounting concepts and conventions are very important basic principles of financial accounting. This topic is quite common in any Commerce Amp Management. Financial accounting is the process of recording, summarizing and reporting the numerous transactions resulting from business activities over a period of time. These transactions are summarized.