Accounting Coursework



Accounting Coursework

The paper discusses about various terms of financial accounting. It also attempts to explain the concepts and convention of accounting principles. The paper then highlights the key users of financial information and mentions their area of interests and as to why they value the financial information of an organization.

Financial Accounting Definitions

Assumptions

An assumption is the expected unspoken, but the truth contained in the information in the financial statements and reports. Assumptions include the recognition of a going, understanding the currency and the validation period of the listed financial transactions (Stolowy & Lebas, 2006, pp 450 - 461).

Axioms

The axioms are the result of many years of experience, which have created a set of general rules for accounting. Often these principles are the treatment of generally the approaches taken in solving their accounting problems (Gove, 2001, pp 231 - 233).

Concepts

The Generally Accepted Accounting Principles (GAAP) are a set of general rules and concepts that guide book to develop benchmarks for the measurement of assets and information of the assets of an entity and economic.

Convention

Accounting convention are accounting standards that are linked with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and with the Standing Interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) (Gove, 2001, pp 231 - 233).

Postulates

Postulates or basic principles are the basis for the formulation of general principles, general principles, drafted based on the principles, which tend to the financial accounting information to achieve the goal of being useful for making economic decisions.

Principles

Accounting principles are generally accepted doctrines are a horn associated with accounting; serving to explain or present the current activities and to guide the selection of conventions or procedures applied by practitioners of public accountancy (Stolowy & Lebas, 2006, pp 450 - 461).

Procedures

Accounting procedures should be considered as an activity of service as a system of information and discipline descriptive and analytical. Any meanings or descriptions of accounting adopted must contain the four bases that define the nature of the information economy, reported as regards, economic entities of any organizational level brought to and people interested in making judgments based on information and decision making use of such information (Gove, 2001, pp 231 - 233).

Conventions and Concepts of Financial Accounting

Public Accountants have developed a set of basic rules and principles of accounting, recognizing that the objective fundamental financial statements is to produce financial information useful for decision making economic ...