explain using various example, how the major accounting concepts are used in preparing financial statement??
accounting assumptions provide a foundation for recording the transactions and preparing the financial statements there from.
Financial accounting is the process of preparing financial statements using data and figures. Cost accounting is similar but you look for alternative ways to figure these figures and data.
closing process
Reliability
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The purpose of financial accounting is to provide financial statements and financial reports to individuals who require them. This includes preparing a balance sheet, income statement, cash flow and notes. People that use this information usually have an interest in the company due to investment or ownership.
By using international accounting standards for preparing of financial statement will standardize them and standardization has benefit that it helps every body to read the financial statements and anybody can easily compare with each other and done analysis as well.
preparing financial statements.
Director's
Accounting standards may be unnecessary in the sense that preparing financial statements is seen as a legal requirement not one that should always be bound by the accounting principles. It isa priority to follow the rules stated by the law even if it may not agree with the known standard.
Series of steps in recording an accounting event from the time a transaction occurs to its reflection in the financial statements; also called bookkeeping cycle. The order of the steps in the accounting cycle are: recording in the journal, posting to the ledger, preparing a trial balance, and preparing the financial statements.Its is an cycle because when the financial statements are made at the end of the year and after the closing of the financial year u have to start ur business again for the new financial year. So everything u do repeats again. Hence, it is a cycle. Hope it answered the question.
The cost principles is the basis for preparing financial statements because it is? B. Relevant and objectively measured, and verified.