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Accounting

This document discusses the importance of accounting and key accounting principles. It provides information for both external users like owners, creditors, government, and investors, as well as internal users like management for planning, decision making, and control. It outlines several generally accepted accounting principles (GAAP) including: 1) treating a business as a separate entity from its owners, 2) recording assets at cost, 3) assuming a business will continue operating indefinitely, 4) matching revenues with expenses to determine profit or loss. It also discusses principles like using a stable currency and basing accounting on objective data.

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Aboelwafa
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27 views

Accounting

This document discusses the importance of accounting and key accounting principles. It provides information for both external users like owners, creditors, government, and investors, as well as internal users like management for planning, decision making, and control. It outlines several generally accepted accounting principles (GAAP) including: 1) treating a business as a separate entity from its owners, 2) recording assets at cost, 3) assuming a business will continue operating indefinitely, 4) matching revenues with expenses to determine profit or loss. It also discusses principles like using a stable currency and basing accounting on objective data.

Uploaded by

Aboelwafa
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Importance Of Accounting

.Provides Information for users:External Users include-1 a-owners b-creditors ( c-governmental units (Tax Authority d-investors : Internal Users include-2 a- management (Planning - Decision ( Making - Control -----------------GAAP
(Generally Accepted Accounting Principles)

( )
Business Entity Concept ( Business separate -1 ( from owner or owners Cost Principles (Assets Should be recorded at -2 (cost Going concern Assumption ( Business is -3 ( continued forever Matching Principle (Matching revenues with -4 (expenses to determine net profit or net loss

Stable currency assumption (The Purchase -5 (Power is Fixed Objectivity principle (Accounting Information -6 (should be based on objective data Realization Principle-7 Realization a- Accrual Basis (Revenues should realized at point (of sell not point of collection b-Cash Basis (Revenues recorded at point of (collection

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