Rules of accountant

Question

Rules of accountant

Accepted Answer

Rules of accounting are principles and guidelines that companies must follow when preparing financial statements.

Accounting equation must always be in balance: Assets = Liabilities + Equity
Revenue recognition principle: Revenue should be recorded when it is earned, not when cash is received
Matching principle: Expenses should be recorded in the same period as the revenue they helped generate
Conservatism principle: When in doubt, choose the option that will result in lower profits or higher liabilities
Consistency principle: Once a company chooses an accounting method, it should stick with it
Materiality principle: Only significant transactions need to be recorded in financial statements

Accepted Answer

Real account: Debit what comes in credit what goes out
Nominal account: Debit all expenses and loss
Credit all income and gains
Personal account: Debit the Receiver and credit the giver

Rules of accountant

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