The accountant keeps all of the business transactions of a sole proprietorship separate from the business owner’s personal transactions. For legal purposes, a sole proprietorship…

This accounting principle assumes that a company will continue to exist long enough to carry out its objectives and commitments and will not liquidate in…

Accounting data should be recorded over a definable period of time. The usual period is one year, called the financial year, ending on June 30…

Economic activity is measured in dollars, and only transactions that can be expressed in dollars are recorded. Because of this basic accounting principle, it is…

An accounting principle is a belief that certain doctrines are desirable and should be followed by members of the accounting profession. In contrast to a…

Assets = liabilities + net worth. The financial statement called the balance sheet is based on the “accounting equation.” Note that assets are on the…

Although the content, presentation, and basis of accounting may vary according to the reporting requirements of Statement, the basic elements of the financial statements remain…

The primary objective of accounting is to provide information that is useful for decision-making purposes. The final product of accounting information is the decision that…

What do we mean by external users and who are they? External users of accounting information are individuals and other enterprises that have a financial…

Just as there are many types of economic decisions, there are also many types of accounting information. The terms financial accounting, management accounting often are…