Fundamentals of Accounting Principles That Financial Student Should Master
Accounting is an art of recording and classifying financial statements logically and cohesively, and transactions that are termed under money are classified. These money transactions are recorded in journal books, and the normal books that come under journal books are cash books, purchases book, purchase return book, sales book, sales return book, bills receivable book and bills payable book. The cash book is normally divided as single column two columns and three column cash book.
Various accounting fundamentals
A student should understand the concept of a time period in finance. It means that there will be a financial year for each company and it can start from any month and end in the next year. Preparation of financial statement and presenting it can be done once in a year or six month or in three months.
Quantified records are a basic theory of accounting. It means that cash that can be quantified will be recorded and will ensure that companies or business will be evaluated based on it. Yes, there are studies that say about the best companies to work on regarding regarding performance and so on. Honestly, shareholders or investors do give scant regard to those surveys. They always look at the financial performance and will also give importance to the financial health of a company.
Money is given importance when a company is involved in trade business and that means currency value is important. The value of dollar with other corresponding currencies is important for trade relations.
The problems in Fundamentals of Accounting from a student perspective
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