An accounting perspective Business insight

Accounting is essential for all three types of business organizations and every company must follow generally accepted accounting principles (GAAP). As corporations have such an important impact on our economy we use them in this text to illustrate basic accounting principles and concepts.

Though corporations constitute about 17 per cent of all business organizations they account for almost 90 per cent of all sales volume. A Single proprietorship constitutes about 75 per cent of all business organizations but account for less than 10 per cent of sales volume.