UNTIT 1:1.1Evolution of accounting1.2Accounting Concepts and Principles:
The Entity Concept
-An organization is a separate entity from the owner(s) of the organization.
The Reliability (Objectivity) Principle
-Accounting records and statements should be based on themost reliable data available so that they will be as accurateand useful as possible.
The Cost Principle
- Acquired assets and services should be recorded at their actual cost not at what they are believed to be worth.
The Going-Concern Concept
-The assumption that the business will continue operatingfor the foreseeable future.
The Stable-Monetary Unit Concept
-Accounting transaction are recorded in the monetary unitused in the country where the business is located.
1.3Why study Accounting
The primary purpose of accounting is to provide information that is useful for decision making purposes. From the very short, we emphasize that accounting is not anend, but rather it id the mean of end.The final product of accounting information is the decision that is ultimatelyenhanced by the use of accounting information weather that decision are made by owner,management, creditor, government regulatory bodies, labor unions, or the many other groups that have an interest in the financial performance of an enterprise.