ACCOUNTING EXPERTISE

All about accounting :- 12th blog                *****ACCOUNTING***** Hi freinds  🙏.,             Today's discuss 7th accounting principles...  So let's discuss...   ★ GOING CONCERN :- The going concern concept is a fundamental principle of accounting. It assumes that during and beyond the next fiscal period a company will complete its current plans, use its existing assets and continue to meet its financial obligations.                      A going concern is a business that is assumed will meet its financial obligations when they fall due. ... Hence, a declaration of going concern means that the business has neither the intention nor the need to liquidate or to materially curtail the scale of its operations.            A going concern is a business that has sufficient financial wherewithal and momentum to contin...

A               *****ACCOUNTING***** Hi freinds  🙏.,             Today's discuss 6th accounting principles...  So let's discuss...   ★ FULL DISCLOSURE :-  The full disclosure concept is an accounting principle that requires management to report all relevant information about the company's operations to creditors and investors in the financial statements and footnotes.   *  Importance of full disclosure in accounting :- An accounting policy disclosure helps to prevent loss. It also helps in preventing the misuse of assets. Potential investors can study open accounting policies to decide if they will invest in the business or not.   * Purpose of full disclosure in accounting :-  The purpose of disclosure is to make available evidence which either support or undermines the respective parties' cases.   * Full disclosure requirement :-  Rules that must be abided by in...

                *****ACCOUNTING***** Hi freinds  🙏.,             Today's discuss 5th accounting principles...  So let's discuss...   ★ HISTORICAL COST :-  The historical cost principle is a basic accounting principle under U.S. GAAP. Under the historical cost principle, most assets are to be recorded on the balance sheet at their historical cost even if they have significantly increased in value over time.   * Importance of historical cost :-  The concept of historical cost is important because market values change so often that allowing reporting of assets and liabilities at current values would distort the whole fabric of accounting, impair comparability and makes accounting information unreliable.   * Difference between historical cost and fair value:- Historical cost is the transaction price or the acquisition price at which asset was acquired or transaction was done, ...

A.            *****ACCOUNTING***** Hi freinds  🙏.,             Today's discuss 4th accounting principles...  So let's discuss...  ★ CONSISTENCY :-  The concept of accounting consistency refers to the principle that companies should use the same accounting methods to record similar transactions over time. ... Companies are not allowed to change from one method to another in a current year then back to the previous method the following year. ★ Why is consistency Important role in business :- Consistency develops routines and builds momentum. It forms habits that become almost second nature. ... Consistency is especially important in business. Restaurants, for example, must be consistent, because customers come in expecting the same good food all the time.         Consistency is the key to success. Consistency leads to habits. Habits form the actions we take every day. Action lead...

A.              *****ACCOUNTING***** Hi freinds  🙏.,             Today's discuss 3rd accounting principles...  So let's discuss...   3. CONSERVATISM :-  Accounting conservatism is a principle that requires company accounts to be prepared with caution and high degrees of verification. All probable losses are recorded when they are discovered, while gains can only be registered when they are fully realized. Conservatism principle is the accounting principle that concern about the reliability of Financial Statements of an entity. ... For example, without using this concept, the accountant could manipulate the accounting records where those transactions are not reliable. Then, the financial statements result unreliable.   ★ Importance of conservatism in accounting :-  In accounting, the convention of conservatism, also known as the doctrine of prudence, is a policy of anticipating possible f...

A.            *****ACCOUNTING***** Hi freinds 🙏.,            Today's discuss 2nd accounting principles...  So let's discuss...   2. REVENUE RECOGNITION :- revenue recognition principle definition.:- The accounting guideline requiring that revenues be shown on the income statement in the period in which they are earned, not in the period when the cash is collected. This is part of the accrual basis of accounting (as opposed to the cash basis of accounting).  ★ Criteria for revenue recognition :-  Before revenue is recognized, the following criteria must be met: persuasive evidence of an arrangement must exist; delivery must have occurred or services been rendered; the seller's price to the buyer must be fixed or determinable; and collectability should be reasonably assured. ★ Types of revenue recognition :-  1. Sales basis method :-  With the sales basis revenue recognition methods, revenue is rec...

 A            *****ACCOUNTING***** Hi freinds.,           Today's discuss what to learnt in accounting ?     1. Accounting principles.     2. Basic accounting concepts.     3. Accounting terminologies.     4. Accounting exercise and prectices.     5. Modern accounting trends.     6. Importance and benefits of accounting. So let's discuss 1st topic in learning section of accounting..     1. Accounting principles :-  Accounting principles are the rules and benchmarks in field, co. Should follow while reporting financial statements. Common set of accounting standards U.S. based is GAAP (Generally accepted accounting principles).  Total 13 principles of accounting let's discuss one by one.     1. Economic entity :-  In accounting, an economic entity is one of the assumptions made in generally accepted accounting principles. Almost any ty...