Are you pursuing a career in accounting, finance or economics? Developing a solid grasp over the fundamentals of accounting will introduce you to the essential framework that serves as a backbone to any complex assignment. Unclear understanding of the basics will make you dependent on
accounting assignment help services online for every task you are assigned in school. Of course, the
assignmentexpert will be there to guide you in times of your need, but it is not advisable to depend on them blindly.
Here are some of the key accounting principles that are taught in most introductory courses. Every professor of USA or expert Accounting assignment writer stresses on the importance of the fundamentals of accounting. Go through each of them carefully to develop a solid grasp of the critical concepts to excel in all your academic assignment writing endeavors.
You must develop a firm grasp of these essential areas to excel in finance and accounting.
1.Accounting equation
The equation that serves as the foundation stone for double-entry bookkeeping and accounting is:
Assets= liabilities + shareholders equity
Assets: Cash, accounts receivable and inventory
Liabilities: accounts payable and outstanding loans
This equation proposes that a company’s assets will always be equal to the sum of its liabilities and shareholder’s equity (for a public company) and owner’s equity (non-public company)
2.Debits and credits
The double entry system is based on the idea that every financial transaction has equal and opposite effect in two of a business’s different accounts. That is the transactions recorded in debits and credits column will always offset one another.
Debit: An entry that increases asset/ expenses account or decreases liability/equity account
Credit: An entry that decreases asset/expenses account or increases liability/ equity account
You must keep in mind that the debits are recorded on the left-hand side of an accounting ledger whereas credits are recorded on the right side.
3.GAAP
GAAP, which stands for generally accepted accounting principles, are a set of accounting principles that organizations use to arrange their financial statements. The basic idea of GAAP is to create a set of recognized, uniform standards that all companies adhere to, regardless of industry or size. It allows a level of consistency in the financial reports and investment opportunities of a company and thus helps the inventors to compare the investment opportunity easily.
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