What are accounting rules? Both modern and traditional?

Question

Accepted Answer

Accounting rules are guidelines and principles that govern the recording and reporting of financial transactions.

Accounting rules ensure consistency and accuracy in financial reporting.
They provide a framework for recording and classifying transactions.
Modern accounting rules are often based on international standards, such as the International Financial Reporting Standards (IFRS) or the Generally Accepted Accounting Principles (GAAP) in the United States.
Traditional accounting rules may vary across countries and industries.
Examples of accounting rules include the matching principle, revenue recognition principle, and the historical cost principle.

Accepted Answer

Accounting Rules are a set of Guidelines & Principals that governs how financial transactions are recorded, classified, and reported in financial statements. These rules are designed to ensure consistency, accuracy, and transparency in financial reporting and to provide stakeholders with reliable and relevant information about an organization's Financial position and performance.

The traditional rule of accounting revolves around debiting and crediting three accounts – real, personal, and nominal.
The modern accounting rule revolves around debiting and crediting six accounts –asset, liability, revenue, expense, capital, and withdrawal.

What are accounting rules? Both modern and traditional?

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