What is accounting? Accounting principles?

Question

Accepted Answer

Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions.

Accounting principles include the accrual principle, the consistency principle, the materiality principle, and the conservatism principle.
Accrual principle states that revenue and expenses should be recognized when earned or incurred, not when cash is received or paid.
Consistency principle requires that accounting methods and procedures should be consistent from one period to another.
Materiality principle states that only significant items should be recorded in the financial statements.
Conservatism principle requires that when there are two acceptable accounting methods, the one that results in lower net income and lower assets should be used.
Examples of financial statements include balance sheet, income statement, and cash flow statement.

Accepted Answer

Accounting is the process of systematically recording business transactions which have monetary value.
Accounting Principles:-
a) Debit the receiver & Credit the giver.
b) Debit Expenses & Credit incomes c) Debit what comes in & Credit what goes out.

What is accounting? Accounting principles?

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