What is the purpose of accounting principles

Assignment Help Accounting Basics

Reference no: EM132532214

Key Accounting Principles and Terms

Directions
As you read through the resources for this Project, use this document to record the definitions of essential accounting principles, terms and concepts using your own words. You will reference these through your work on this Goal.

1. What is the purpose of accounting principles?
Define the following accounting principles and concepts:
1. Accruals principle:
2. Time Period (Periodicity) Principle:
3. Historical Cost Principle:
4. Business (Accounting) Entity Principle:
5. Full Disclosure Principle:
6. Matching Principle:
7. Monetary Unit Principle:
8. Recognition (Realization) Principle:
9. Conservatism Concept:
10. Consistency Concept:
11. Materiality Concept:

Describe the following four Financial Statements and explain the purpose of each:
1. Income Statement:
2. Statement of Changes in Equity:
3. Balance Sheet:
4. Statement of Cash Flows:

Describe the following types of Business Ownership, providing at least three characteristics per ownership type:
1. Proprietorship:
2. Partnership:
3. Corporation:

Describe the Accounting Equation and Double-Entry Accounting:
1. What is the accounting equation?
2. What is double-entry accounting?

Reference no: EM132532214

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