Top 10 Basic accounting principles

Accounting Principles

Accounting Principles There are generally accepted accounting principles (GAAP) that govern the field of accounting. These accounting principles are important guideline and framework for which accounting rules are based. The followings are important accounting principles:  1. Economic Entity Principle An accountant must account business transactions separately from business owners’ transactions. Each business is an economic entity, and therefore, its performance should be measured … [Read more...]

Accounting Equation – The Key concept for beginners

Accounting Basics Equation

It is always best to start with basic things first. In this post, I will tell you simple stories that will help you quickly understand accounting basics concepts. Actually, there is no definition of accounting basics, but they include general principles that are important for beginners to understand. What is accounting? When people started doing business for thousand years ago, they used book to record transactions. This help the business owner knows how much cash they earned during the … [Read more...]

Understand Key Accounting Terms

Accounting Terms

(Updating in progress..) Accounting terms sometime is quite easy to understand by common senses but there are many accounting terms that are difficult to understand until you get familiar with basic concepts of accounting first. The followings are the most common accounting terms. Accounting: Accounting is the recording of business transactions. It also involves reporting, analyzing and summarizing information. Accounting Equation: The Accounting Equation is Assets = Liabilities + … [Read more...]