Hello Kids!!! Welcome you for the basic steps of Accounting!!!!!!!
Here we go…..
What is accounting????
Simply accounting means the ability to maintain financial record in sake of business owners and other stakeholders.
As we all know the basic aims of the businesses are profits. How businesses success or failure is determined.
Accounting Concepts
Going concern concept: - Defines that the business is going continue for a see able future
Consistency concept:-Defines that the same treatment should be applied to similar goods
Prudence concept: - States that the profits and the assets should not be overstated and liabilities should not be understated
Materiality concept: - States that the items with an applicable value should be recorded
entity concept: - States that transactions of the owner should be separate from its owners.
That’s all for this section. Please be humble to report any errors as I am still a schooling student.
