Accounting Topics
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What is Accounting? Importance of Accounting | Types of Accounting
What is Accounting? Accounting is a art of recording classifying summerising in a significant manner in terms of money and in financial terms and interpreting the result there of.. Accounting is a term that describes the process of consolidating financial information to make it clear and understandable for all stakeholders and shareholders. The main goal of accounting is to record and report a company’s financial transactions, financial performance, and cash flows. Accounting standards improve the reliability of financial statements. The financial statements include the income statement,…
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What are the Different Branches of Accounting?
What are the Different Branches of Accounting? The following are the main branches of accounting: (a) Financial accounting: Financial Accounting is that branch of accounting which involves identifying, measuring, recording, classifying, summarising the business transactions, i.e. it involves the steps from Identifying, Recording of transactions to Summarisation, and communicating the financial data. (b) Cost accounting: Cost Accounting is that branch of accounting which is concerned with the process of ascertaining and controlling the cost of products or services. (c) Management…
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Characteristics of Accounting
Characteristics of Accounting: Characteristics of Accounting The following attributes or characteristics can be drawn from the definition of Accounting: (1) Identifying financial transactions and events Accounting records only those transactions and events which are of financial nature. So, first of all, such transactions and events are identified. (2) Measuring the transactions Accounting measures the transactions and events in terms of money which are considered as a common unit. (3) Recording of transactions Accounting involves recording the financial transactions inappropriate book…
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Objectives of Accounting
Objectives of Accounting The main objectives of accounting are: To maintain a systematic record of business transactions Accounting is used to maintain a systematic record of all the financial transactions in a book of accounts. For this, all the transactions are recorded in chronological order in Journal and then posted to principle book i.e. Ledger. To ascertain profit and loss Every businessman is keen to know the net results of business operations periodically. To check whether the business has earned…
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What is the difference between accounts, accounting and accountancy?
What is the difference between accounts, accounting and accountancy? Difference between an Account, Accounting, and Accountancy is mentioned below: Account: An account is a record holder used to store and make transactions. It prepares the financial documentations in the form of debit or credit cards. Standardly, an account is the statement of all the financial proceedings. Accounting: Keeping the comprehensive record of financial affairs of an account and the analysis. Reporting of such transactions to different departments such as…
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What Is Accounts, Accountancy and Accountants
What Is Accounts accountancy and accountants What is an Account? Definition: An account is a record in an accounting system that tracks the financial activities of a specific asset, liability, equity, revenue, or expense. These records increase and decrease as the business events occur throughout the accounting period. Each individual account is stored in the general ledger and used to prepare the financial statements at the end of an accounting period. What Does Account Mean? What is the definition of account? There are five main…
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