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What is the accounting device that is used to store the recorded monetary information from the entity's transaction and events?
The accounting device used to store recorded monetary information from an entity's transactions and events is called a ledger. A ledger organizes financial data into accounts, reflecting the company's assets, liabilities, equity, revenues, and expenses. It serves as the central repository for all accounting entries, allowing for accurate tracking and reporting of financial performance.
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What is monetary convention?
Monetary convention is the convention that specifies that: All transactions must be recorded in money terms, and all transactions must be recorded in the currency of the country where the transaction was performed.
Is accounting the language of business?
Yes, because all business transaction are recorded using accounting that's why it is called language of business.
Filled Customer Orders Collected transaction are recorded into the accounting system using what balance identifier?
The answer is R
What is monetary unit principle as it relates to Accounting?
The Monetary unit principle states that all items must be recorded and reported in monetary terms, i.e. in the currency of the country of location where reports are being prepared and ultimately used.
What is the difference between cash-based and accrual-based accounting?
under cash base system of accounting/book keeping transaction is recorded in the books of accounts when actually cash received or paid relevant to the transaction, whereas, in accrual Base system of accounting there is not any compulsion to actually receive or pay cash before recording the transaction in the books of accounts but only evidence of an event is needed to record it!
What is monetary convention?
Monetary convention is the convention that specifies that: All transactions must be recorded in money terms, and all transactions must be recorded in the currency of the country where the transaction was performed.
Why do debits equal credits?
In double entry accounting system any transaction should be equal for both debit as well as credit side to be recorded otherwise no business transaction can be recorded. This assures the basic accounting equation as well.
What is recorded facts which effects nature of financial statements?
in accounting all facts are not recorded only those facts or transactions are recorded which can be represented in terms of money and which can not be recorded fall beyond the scope of accounting thus in accounting the recorded facts are those which can be presented in monetary terms.
Is accounting the language of business?
Yes, because all business transaction are recorded using accounting that's why it is called language of business.
What are the loan accounting entries that need to be recorded for this transaction?
The loan accounting entries for this transaction typically include recording the loan amount as a liability and the cash received as an asset. Interest expense and loan repayments are also recorded as the loan is paid off over time.
How are liabilities affected by debits and credits in accounting?
In accounting, liabilities are affected by debits and credits based on the type of transaction. When a liability increases, it is recorded as a credit, and when a liability decreases, it is recorded as a debit. This helps maintain the balance in the accounting equation.
Filled Customer Orders Collected transaction are recorded into the accounting system using what balance identifier?
The answer is R
What is the monetary unit assumption?
"The monetary unit assumption requires that companies include in the accounting records only transactions data that can be expressed in terms of money. This assumption enables accounting to quantify (measure) economic events. The monetary unit assumption is vital to applying the cost principle. This assumption prevents the inclusion of some relevant information in the accounting records. For example, the health of the owner, the quality of service, and the morale of employees are not included. The reason: Companies cannot quantify this information in terms of money. Though this information is important, only events that can be measured in money are recorded." Source: "Accounting Principles" Wiley. 8th edition. Weygant; Kieso; Kimmel.
What is monetary unit assumption?
"The monetary unit assumption requires that companies include in the accounting records only transactions data that can be expressed in terms of money. This assumption enables accounting to quantify (measure) economic events. The monetary unit assumption is vital to applying the cost principle. This assumption prevents the inclusion of some relevant information in the accounting records. For example, the health of the owner, the quality of service, and the morale of employees are not included. The reason: Companies cannot quantify this information in terms of money. Though this information is important, only events that can be measured in money are recorded." Source: "Accounting Principles" Wiley. 8th edition. Weygant; Kieso; Kimmel.
What is monetary unit principle as it relates to Accounting?
The Monetary unit principle states that all items must be recorded and reported in monetary terms, i.e. in the currency of the country of location where reports are being prepared and ultimately used.
What is a sap posting date?
A SAP posting date refers to the date on which a financial transaction is recorded in the SAP system. It determines the period in which the transaction will be reflected in financial reports and is crucial for accurate accounting and compliance. The posting date can differ from the document date, which is when the transaction actually occurs, allowing for flexibility in financial reporting. Proper management of posting dates ensures that transactions are recorded in the correct accounting period.
Importance of ICT in accounting profession?
The accounting transactions are recorded at a faster speed than in manual accounting systems,thus, more of information can be recorded in same time that it would have been done manually
