Meaning of Accounting Accounting is an information system of identification, measurement, recording, and reporting of economic events or transactions of an organization to internal and external users. Accounting is a process of the following 4 (four) activities: 1. Identification: Identi...
Conceptual Framework = Conceptual+Framework • Conceptual = idea/plan • Framework = basic structure/constitution/boundary CF The plan or ideas of the basic structure of generating and presenting accounting information to internal and external users. A conceptual framework is “a coherent...
Basic Accounting Equation-Meaning and ComponentsThe basic accounting equation is a mathematical expression of the relationship between assets, liabilities, and owner’s equity. This is stated as: Assets = Liabilities + Owner’s EquityLearners, you may ask...
Steps in the Recording ProcessThe recording/accounting process constitutes the steps followed in recording, processing, and communicating financial information. This process can be illustrated in the following way:Step–1: Identification and Measurement of TransactionIt is being done based on basic a...
Journal-Meaning and ImportanceA journal is a book of accounts in which all day-to-day business transactions are recorded in chronological order i,e., in the order of date of their occurrence. Transactions when recorded in a Journal are known as entries. It is the book in which transactions are recor...
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