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What kind of transaction can not be done in accounting?
All kinds of transactions, everything, can be done in accounting, however, by virtue of certain limitations, prescribed by statutes, etc., not all transactions need be or should be done in accounting.
What are the basic principles of accounting?
The basic accounting principles is that the accounting transactions should be recorded in the accounting periods Second important principle is record all the expenses and liabilities as soon as they occur.
Accrual basis accounting vs Cash basis Accounting?
Under accrual basis of accounting, transactions are recorded when they actually occurred while in cash basis accounting transactions are recorded when actual cash is paid. Accrual accounting follows the matching concept according to which all revenues in one period should be match with expenses.
Which accounting concept or principle specifically states that you should record transactions at amounts that can be verified?
revenue recognition
Why should you keep private and business transactions separate?
In business books of accounts only business transactions are recorded as per Entity concept of accounting business owners and business accounts are two separate entities and two separate entities cannot show transactions in same books of accounts.
What kind of transaction can not be done in accounting?
All kinds of transactions, everything, can be done in accounting, however, by virtue of certain limitations, prescribed by statutes, etc., not all transactions need be or should be done in accounting.
What are the basic principles of accounting?
The basic accounting principles is that the accounting transactions should be recorded in the accounting periods Second important principle is record all the expenses and liabilities as soon as they occur.
Accrual basis accounting vs Cash basis Accounting?
Under accrual basis of accounting, transactions are recorded when they actually occurred while in cash basis accounting transactions are recorded when actual cash is paid. Accrual accounting follows the matching concept according to which all revenues in one period should be match with expenses.
Which accounting concept or principle specifically states that you should record transactions at amounts that can be verified?
revenue recognition
Why should you keep private and business transactions separate?
In business books of accounts only business transactions are recorded as per Entity concept of accounting business owners and business accounts are two separate entities and two separate entities cannot show transactions in same books of accounts.
Explain the rules regarding posting of transactions into the ledger?
When posting transactions into the ledger, each entry must reflect the double-entry accounting principle, meaning that every transaction affects at least two accounts: one debit and one credit. The debits must equal the credits to maintain the accounting equation (Assets = Liabilities + Equity). Additionally, transactions should be recorded in chronological order, and each entry must include a clear description, date, and reference number for traceability. Finally, all postings should be reviewed for accuracy before closing the accounting period.
What are the basics an accounting package should include?
An accounting package is necessary for keeping track of all of your company's financial transactions. Common features in an accounting package include Accounts Payable, Accounts Receivable, Billing, Purchase Orders, Sales Orders, and more. Depending on what type of company you are running, you may need more extensive features in your accounting package.
How should I record transactions?
One of the first decisions you need to make when setting up your books is deciding how you will record transactions. You can record transactions by hand, hire an accountant, or use accounting software. Recording transactions by hand is the most inexpensive and time-consuming method. You open up your business to making common accounting errors, such as miscalculating or failing to balance accounts. Hiring an accountant is the most expensive but least time-consuming method. When you hire an accountant, you don’t need to manage your books. You may hire an in-house accountant or outsource to an accounting company. Lastly, you can opt for an accounting software provider to manage your books. Using software lets you track incoming and outgoing money and organize your books. With software, you can automate your recordkeeping responsibilities, then hand over your books to an accountant for the more complicated accounting requirements, such as tax preparation.
How you can explain accounting is an information system?
Accounting is an information system for measuring, processing and communicating information that is useful in making economic decision. Every business is conducted to make profit. Accounting knowledge is there to assist the business man to assess whether the business is making profit or loss. In accounting brings discipline on how to source money, how to spend and how much to save. Accounting ensures consistency in the treatment of various transactions. Accounting involves gathering of financial data, recording classifying, summarizing and communicate the results to the owners of the business, or to others allowed to receive this information. Accounting should not be confused with Book keeping as Book keeping is the part of accounting concerned with recording of financial data. Book keeping is the process of recording data relating to accounting transactions in the books of accounts.
What is the relevance of philosophy to accounting?
Much of philosophy is concerned with morals and ethics. Accoutancy is all about - or should be all about - ethical accounting of business transactions. The current malaise in the financial markets shows that morals and ethics have not been as prominent as they probably ought to have been in the minds of many people.
State the person who should be interested in accounting information?
state the persons who should be interested in accounting information
Discuss the consistency concept in accounting?
Consistency is a concept used when applying accounting methods to a business, the business must continue to use that particular method. For an example if a company is charging depreciation using the straight line method, they must stick with the straight line method. According to this concept,whatever accounting practices(whether logical or not) are selected for a given category of transactions,they should be followed from one accounting period to another to achieve compatibility for example:if depreciation is charged according to a particular method it should be followed year after year for the purpose of comparision.
