Accounting concepts and techniques

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Accounting concepts and techniques refer to the principles and methods used in financial accounting to record, analyze, and report financial transactions.

Accounting concepts include the accrual basis of accounting, the matching principle, and the consistency principle.
Accounting techniques include double-entry bookkeeping, financial statement analysis, and ratio analysis.
These concepts and techniques are used to ensure accurate and reliable financial reporting, which is essential for making informed business decisions.
For example, double-entry bookkeeping ensures that every transaction is recorded in two accounts, which helps to prevent errors and fraud.
Financial statement analysis involves examining a company's financial statements to assess its financial health and performance.
Ratio analysis involves calculating and interpreting financial ratios to gain insights into a company's liquidity, profitability, and efficiency.

Accounting concepts and techniques

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