Accounting Principles - 721 Words

Accounting Principles The primary objectives of accounting is to keep track of transactions and recording revenue and expenses are important business processes often assigned to an accounting department or a financial manager. Accounting is a business discipline that allows companies to record analyze and retrieve critical financial information that can be used to determine a companys financial status and provide reports and insights needed to make sound financial decisions. There are four basic terms in accounting they are assets, liability, revenue , and expenses. Assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic†¦show more content†¦Businesses can track which customers will pay there bills on time and which customers that will be late with payments. Accounting systems may also inform businesses when customers miss payments on accounts. This is particularly important for small businesses where every dollar is of the utmost importance for continued success. Then finally the businesses can use the simplify tax reporting systems shrink the amount of paperwork a business must keep on hand for accounting and tax purposes. The system can hold sales figures and estimated tax obligations, thereby reducing the stress of finding all the necessary documents when its time to pay taxes at the end of the year. All a business owner has to do is print out the necessary information for an accountant to go over and get back to running theShow MoreRelatedThe Accounting Principles Of Accounting1754 Words   |  8 PagesIntroduction Measurement of accounting elements is the most significant factors that entail the process of preparing financial statements. Accounting measurements presents the vital economic objectives for various accounting entities (Horngren, 2009). Fair value refers to a financial reporting approach operating under the accepted accounting principles (GAAP). This accounting method is also referred to as Mark-market accounting practice. In united Sates majority of the public and private companiesRead MoreAccounting Principles And Its Impact On Accounting1210 Words   |  5 Pages revised accounting standards require companies to change accounting methods. The three categories for changes are accounting principles, estimates, and reporting entity. Change in accounting principles happens when a company changes from one generally accepted accounting principle to another. For instance, Company A uses FIFO inventory cost method but decides to uses LIFO instead. Revision of an estimate because of new information or new experience is called change in accounting estimate.Read MoreWalmarts Accounting Principles1090 Words   |  5 PagesFour Accounting Principles Sharon Wallace American Intercontinental University Accounting Principles 2012 Four Accounting Principles ABSTRACT Accounting principles used by Wal-Mart and the core function of its departments. Wal-Mart’s strength and weaknesses will be listed. Wal-Mart’s last two years of accounting statements are also present. FOUR ACCOUNTING PRINCIPLES Read MoreThe Accounting Principles And Procedures927 Words   |  4 Pagesverifiable, consistency, and comparability when applying accounting principles and procedures. The accounting principles and procedures directly affect the company’s balance sheet and it financial statement by depending on hot it’s prepared and interpreted. If there are any changes in the accounting principles and procedures when preparing the financial statements, it should be notified and documented any changes that made to the company’s accounting practices. Therefore, this paper is going to addressRead MorePrinciples And Concepts Of Accounting2338 Words   |  10 Pages Principles and Concepts of Accounting Name Institution Introduction The major accounting principles that guide accounting practices are endorsed on the Generally Accepted Accounting Principles (GAAP). This is an international guidelines that all the companies and organizations are expected to apply in their operations. These principles are further classified into assumption and constraints. The assumption principles include business entity, going concern, monetary unit and time periodRead MoreAccounting Principles Assignment2931 Words   |  12 Pagesexamples,how the major accounting concepts are used in preparing financial statements. Answer : There are several accounting concepts that are used by the accountants worldwide in preparing financial statements.Using these principles one can prepare a fair and accurate financial statement for a period that would reflect the true condition of the business. Among all the accounting principles,there are some very important fundamental concepts.Those major accounting concepts are : Read MoreThe Two Principles Of Accrual Accounting891 Words   |  4 Pages In order to fully understand the accounting cycle and complete all eight steps, an accountant must understand the adjusting and closing process and be able to prepare trial balances. The unadjusted, adjusted, and post-closing trial balances are all prepared during the eight step accounting cycle. In order to maintain the most accurate financial statements, accrual accounting should be used. Accrual accounting is an â€Å"accounting method that records revenues when earned and expenses when incurred withoutRead MoreFoundational Accounting Principles and Terminology1060 Words   |  5 PagesRunning Head: Foundational Accounting Principles and Terminology 1 TUI University Eric Bollar Module 1: Case Assignment ACC501 Accounting For Decision Making Dr. Wendy Achilles January 21, 2011 Foundational Accounting Principles and Terminology 2 We all know how important the accounting aspect of any business/organization is. It is basically the most important way to manageRead MoreGenerally Accepted Accounting Principles1314 Words   |  6 PagesAccountants use generally accepted accounting principles (GAAP) to guide them in recording and reporting financial information. GAAP comprises a broad set of principles that have been developed by the accounting profession and the Securities and Exchange Commission (SEC). Two laws, the Securities Act of 1933 and the Securities Exchange Act of 1934, give the SEC authority to establish reporting and disclosure requirements. However, the SEC usually operates in an oversight capacity, allowing the FASBRead MoreThe Basic Principles of Accounting - 11176 Words   |  5 PagesThe Basic Principles of Accounting Cherry Marler ACCT205-1203A-17, IP-1 Instructor Jeffery Bloom June 06, 2012 Abstract Accounting is used for several purposes. Investors, creditors, and individuals use accounting to see whether a business is successful or not. Managers and employees use accounting to make decisions on certain objectives. There are four main statements used in accounting: The balance sheet, income statement, the statement of retained earnings, and the statement of cash