Generally, accounting is subdivided as follows :
a)
Book-keeping
b)
Measuring working results and capital of the economic entity and
reporting.
a) Book-Keeping : Book-keeping
is the art and science of recording transactions of a business
enterprise or an organisation carrying out non-business activities in a
systematic and appropriate manner to measure the working results and capital at
periodical interval depending upon needs of an entity.
(b) Measuring working
results and capital of the economic entity and reporting : The most important aspect of accounting records is to
measure the working results and the capital of the economic entity and
interpreting and reporting of results.
Accounting principles are
built on a foundation of a few basic concepts. These concepts are so basic that
most accountants do not consciously think of them; they are regarded as being
self-evident. Non-accountants will not find these concepts to be self-evident.
Some accounting theorists argue that certain of the present concepts are wrong
and should be changed. But in order to understand accounting, as it now exists,
one must understand what the underlying concepts currently are. The different
aspects are :—
1.
Business Entity Concept
2.
Money Measurement Concept
3.
Cost Concept
4.
Going Concern Concept
5.
Dual-aspect Concept
6.
Realisation Concept
7.
Accrual Concept
8.
Accounting Period Concept
0 comments:
Post a Comment