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Accounting refers to the systematic collection, recording and classifications of transaction. It is a professional body of knowledge that is concerned with interpretation and communication of financial statements. Accounting is concerned with preparation of profit and loss statement and also undertakes to prepare the statement of affairs of business. Accounting is the process in which, the information relating to different resources required by an organization. It also deals with information about finances needed to acquire the resources. Experts describe accounting at solve my accounting paper.
• Recording is a major feature of accounting. It is an art of recording business transactions, which is recorded on the basis of money of cash and cheques.
• Classifying is another feature of accounting. It is important that the different transactions are classified under different heads based on the nature of accounting. All transactions are further categorized under one category known as ledgers.
• Summarizing is another important feature of accounting. Summarizing is the act of presenting a summary of all the transactions. In accounting, summarization is done by preparing the final accounts, which comprises of profit and loss. Balance sheet is also another aspect of accounting. Summarizing feature of accounting is visible from the preparation of profit statements and also the preparation of balance sheet.
• Interpretation is another important feature of accounting. The process of recording, classifying and summarizing ultimately lead to interpretation of the accounting statement. It leads to interpretation of whether the accounting statements are depicting a sound state and if the profitability level of the organization is high or low.
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Accounting Principles are the rules and regulations that a company needs to conform to. It can be seen that accounting principles are the set of rules and provide the framework within which, a company needs to function. Solve my accounting paper online depicts it as the set of rules that form the accounting principles are generally accounting principles.
The act of recording, classifying, summarizing and interpreting transactions is known as accounting.
It is the statement depicting the state of affairs of business. Balance Sheet comprises of the assets of the business, which is categorized in current and non- current assets and comprises of liabilities and shareholder’s funds. Balance sheet is concerned with highlighting and depicting the current state of affairs of a business.
The profit and loss statement of an organization is the summarization and evaluation of the operations of an organization. Profit and loss statement reflects on the level of success that the organization has achieved in term of profitability. The profit and loss statement reflect on the fact whether the business has generated a profit or incurred a loss during the current accounting year. The description of profit and loss statement is strategically highlighted at solve my accounting paper.
Cash flow statement reflects on the outflow and inflow of cash during the accounting year for an organization. Cash flow statement highlights the flow of cash in the form of payment and receipt, which in turn interprets and communicates the state of business. Positive cash flow reflects the inflow of cash being greater than outflow cash and a negative cash flow suggests vice versa effect. Cash Flow is a mirror for the operations and state of business of an organization, as suggested at solve my accounting paper online.
Trading account reflects on the expenditure and income earned through the main operations of the business. Trading account reflects on the expenditure and income created during the production process and includes all direct income and expensive.
Comparative balance sheet
Comparative balance sheet reflects on the comparison of balance sheet of the organization between two years. The current year is considered as the base year and the succeeding year balance sheet value and data are compared to undertake a comparative analysis of the state of affairs of the organization between the current and the succeeding year.
Revenue expenditure denotes the daily and the recurring expenditure incurred the business activity of the organization. It is the daily expense of the business and is incurred on a frequent basis.
Capital expenditure denotes the expenditure that is incurred on a non- recurring basis and also does not form a part the business expenditure incurred during the accounting year. It usually denotes the purchase of capital asset, which increases the profit earning capacity of the organization.
Organizations are involved in dealings and transactions, where an organization is obligated to pay to outsiders and creditors. This is known as accounts payable.
When outside parties and stakeholders owe money to the organization, it is a case where the company develops account receivables since the company expects to receive money from outside parties.
Accrual basis stresses on the recognition of an item and not the actual generation of the transaction. Prudent estimates of the transactions are made and therefore outstanding expense and accrued income are estimated when these transactions are recognized.
Under cash basis method, the transactions are recognized when they are actually generated and involve the actual incurring of expenditure and generation of income. Under cash basis, the transactions are recognized as and when they get generated.
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