There are mainly five types of financial statements; statement of financial position, income statement, statement of changes in equity, statement of cash flows and disclosure notes. The former four mainly show the relevant financial data to a business but the …
Financial Statements are the reports that provide the detail of the entity’s financial information including assets,liabilities, equities, incomes and expenses, shareholders’ contribution, cash flow, and other related information during the period of time. These statements normally required to have an …
Fundamental Accounting Assumptions Accounting assumptions are the three very basic accounting concepts or principles that are assumed to have been followed in the accounting transactions of an entity. So there is a need for a specific notation saying such concepts …
What Is an Accounting Convention? Accounting conventions are guidelines used to help companies determine how to record certain business transactions that have not yet been fully addressed by accounting standards. These procedures and principles are not legally binding but are …
Accounting Principles Accounting principles are the general rules and guidelines that companies are required to follow when reporting all accounts and financial data. Maintain and manage your business practices with Debitoor’s online accounting platform to help you stay on top of …
Accounting Concepts Business entity concept:Â A business and its owner should be treated separately as far as their financial transactions are concerned. Money measurement concept:Â Only business transactions that can be expressed in terms of money are recorded in accounting, though …
Role of Accountant Accounting is both a science as well as an art. A person performing functions like recording, classifying and summarizing data to generate useful information like profit and loss for the period of an organization is known as an …
Despite accounting’s huge advantages, there are limitations of accounting that every accountant, businessmen, student must be aware of. Limitations of accounting are; Recording only monetary items. Time value of money. Recommendation of alternative methods. Restrain of accounting principles. Recording …
Accounting’s Relation with Other Disciplines Accounting is a dynamic and an applied subject. Even though it is an independent study, it has a relationship with other subjects. Accounting has a relationship with other disciplines management, economics, mathematics, computer science, statistics, …
Users of Accounting Information The accounting process provides financial data for a broad range of individuals whose objectives in studying the data vary widely.  Three primary users of accounting information were previously identified, Internal users, External users, and Government/ IRS.  Each …