Accounting Concepts and Principles Homework Help

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Accounting Concepts and Principles Homework Help

Accounting is the process in which a company monitors the financial expenses and revenues. By the help of accounting a company can show the inflow and outflow of money in the company to its stakeholders and new business interested users. Accounting also is the main component in the budget making process of an organization. Accounting has some principles and concepts under which all the procedures of accounting takes place. These accounting concepts and principles are called as generally accepted accounting principles, GAAP is its abbreviation. Our homework helptutors can provide you with wealthy information for your accounting concepts and principles homework.

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Here are the accounting concepts and principles.

  • Business entity: A business must be considered as a separate entity from the owner of the business and should be treated separately. In simple words, personal expenses and earnings of the owner should not be recorded in the accounting book. It can only be done if an owner withdraws or adds something to the business using business resources.
  • Going concern : Going concern assumes that an entity will keep working for an indefinite period. So, assets are recorded in the accounting book on their original cost instead of their market value. Assets are a long term investment for a company, and it is not intended to be sold immediately. Avail our online homework help to understand it better.
  • Monetary unit: Monetary unit is used to keep the transaction done in a monetary unit such as, US dollars, Australian dollar, pounds or Euros, etc. on the other side, any non-financial or non-monetary transection that is immeasurable in the monetary unit would be written in a memorandum. It would not be recorded in the accounting books.
  • Historical cost: All the resources of a business organization should be recorded on the balance sheet at its original cost, not on the current or future market value. This rule can be an exception if the business is closing or in is the process of liquidation.
  • Matching: according to the matching concept, revenues should be recorded in sync with expenses that brought them in the same period.
  • Accounting period : This principle makes sure that accounting of the business should be completed within the financial year of the company.
  • Conservatism : This principle of accounting helps a company to play safely. It tries to anticipate future losses, not future gains. Our accounting homework help expert can elaborate about it for you.
  • Consistency : By the help of this principle of accounting, a company can maintain consistency in the accounting procedure between two financial years.
  • Materiality : Materiality can allow you to violate matching principle if the amount of an expense is too small to mention in the accounting book and would not mislead the financial information.
  • Objectivity : This principle of accounting says that accounting procedure should be free of any bias and prejudice.
  • Accrual : According to accrual principle, all the revenues should be recorded on the date it is earned, whether company earned the cash or not. Same goes in case of an expense.

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