Cost Principle
From an accountant's point of view, the term "cost" refers to the amount spent (cash or the cash equivalent) when an item was originally...
Time Period Assumption
This accounting principle assumes that it is possible to report the complex and ongoing activities of a business in relatively short,...
Monetary Unit Assumption
Economic activity is measured in U.S. dollars, and only transactions that can be expressed in U.S. dollars are recorded. Because of this...
Economic Entity Assumption
The accountant keeps all of the business transactions of a sole proprietorship separate from the business owner's personal transactions....
List of Fundamental Principles of Accounting
Economic Entity Assumption. Monetary Unit Assumption. Time Period Assumption. Cost Principle. Full Disclosure Principle. Going Concern...
Debits And Credits in Accounts
Business transactions are events that have a monetary impact on the financial statements of an organization. When accounting for these...
Types Of Accounts In a Business
Personal: Personal accounts make most intuitive sense. We keep a track of all the transactions that we have undertaken with a particular...
Different Types of Entities in a Business
Businesses may all look the same when you look at the building in which they operate, the employees they hire and the product they sell....
Who Uses Accounting Data? Do You Know...
Financial reporting is used by a wide variety of users for a wide variety of purposes. For this reason it has been difficult to set a...
Limitation Of Accounting
Knowledge of limitations helps to factor them in and work with them. Here are the major limitations of accounting. Subjective Measurement...
