ACCOUNTING EXPERTISE

ALL ABOUT ACCOUNTING :- 16th BLOG       ☆☆☆☆☆ACCOUNTING☆☆☆☆☆ Hi freinds  🙏.,             Today's discuss 11th accounting principle. So let's discuss...    ★ RELIABILITY  :-  Accounting reliability refers to whether financial information can be verified and used consistently by investors and creditors with the same results. Basically, reliability refers to the trustworthiness of the financial statements. The accounting rule of the reliability principle concerns the financial information of a business, and states that the information presented in the accounting records and statements should be the most accurate and relevant information available.   * For example :-  Company ABC LTD. is being sued for damages by Company XYZ LTD. If Company ABC LTD. loses the case, they will have to pay a significant amount in settlement money, which could threaten the financial stability of their company.   * Types o...

ALL ABOUT ACCOUNTING :- 15th BLOG         ☆☆☆☆☆ACCOUNTING☆☆☆☆☆ Hi freinds  🙏.,             Today's discuss 10th accounting principle. So let's discuss.,   ★ MONETARY  UNIT :-  The monetary unit principle states that business transactions should only be recorded if they can be expressed in terms of a currency. ... According to the monetary unit principle, when business transactions or events occur, they are first converted into money, and then recorded in the financial accounts of a business. * The stable monetary  unit :-             The stable monetary unit concept assumes that the value of the rupees is stable over time. This concept essentially allows accountants to disregard the effect of inflation -- a decrease, in terms of real goods, of what a rupees can purchase.  * Importance of monetary unit  assumption :-             While...

ALL ABOUT ACCOUNTING :- 14th BLOG      ★★★★★ACCOUNTING★★★★★ Hi freinds  🙏.,             Today's discuss 9th accounting principle. So let's discuss.,     ★ MATERIALITY :-  The materiality principle. The materiality principle states that an accounting standard can be ignored if the net impact of doing so has such a small impact on the financial statements that a user of the statements would not be misled. A classic example of the materiality concept is a company expensing a rs.2000 wastebasket in the year it is acquired instead of depreciating it over its useful life of 10 years. The matching principle directs you to record the wastebasket as an asset and then report depreciation expense of $20 a year for 10 years.   * Calculation of materiality :-  The normal materiality evaluation process is to review each item individually and then all items in the aggregate based on the working materiality levels for each...

A ll about accounting :- 13th blog.                 *****ACCOUNTING***** Hi freinds  🙏.,             Today's discuss 8th accounting principles...  So let's discuss...   ★ MATCHING CONCEPT :-  🔥 Matching principle is a part of the Generally accepted accounting principle [GAAP]. The matching principle states that expenses should be recognized and recorded when those expenses can be matched with the revenues those expenses helped to generate. For eg :-  cannot be matched to any specific revenue stream. These expenses are recorded in the current period.   * Definition of matching concept :- The Matching Principle states that all expenses must be matched in the same accounting period as the revenues they helped to earn. In practice, matching is a combination of accrual accounting and the revenue recognition principle.    * Difference between matching concept and accrual c...

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, ...