The basic accounting principles

Accounting as accounting professor at the University of Michigan William Paton a

s a basic function is defined as: "facilitating the management of economic activ
ities This function has two closely related phases: 1.) Measurement and data on
economic and 2) the results of this process, interested. "
For example, an accounting firm periodically measure the profit and loss account
of a month, quarter or fiscal year and publish the results of profits and losse
s as a tax. These statements include terms such claims (resulting in the Company
) and liabilities (what the company expects.) You can also get very complicated,
with topics such as income and accelerated depreciation. The highest level of a
ccounting and the organization.
Most of the reports, but also deals with accounting. It is the process that ever
y transaction, every bill paid, every dime owed, every dollar spent per cent and
cumulative records.
But the owners of the company that can individually be owners or shareholders of
millions more listed with summaries of the transactions in the financial statem
ents can. The financial account shows the activities of a company. A value of an
asset is what it cost when it was purchased. The financial statements also note
s that the sources were. Some activities are awarded to the statement. The benef
its are also a commercial commodity.
Tasks in the so-called double-entry are also summarized. Obviously a company wan
ts to show a larger amount of resources to the risks and benefits balanced. The
management of these two elements is the essence of accounting.
Is it possible to do this, not every company or person can develop their own acc
ounting systems, the result would be chaos!