Vouchers and other supporting documents are necessary as evidence to record the business transactions. Financial information may include sales, expenses, taxes and other figures. To ensure the financial information is accurate, reliable, and relevant, include the following in your review: Apply the most relevant accounting principle from GAAP to each business transaction. Items of non-financial character such as changes in managerial policies, etc. In accounting identifying economic events involves selecting the economic activities related to a particular organization such as paying out salaries to employees of a particular entity. Book-keeping is the first step to accounting. If an event cannot be quantified in monetary terms, it is not considered fit for recording in books of the firm. As an accountant, you are responsible for effectively conveying the importance of accurate financial information. Enter the transaction in the accounting system. items of financial character are to be recorded. fully solved questions with step-by-step explanation, NIOS Accountancy Chapter 2 Accounting Concepts: Part 1 to 4, NIOS Accountancy Chapter 3 Accounting Conventions and Standards: Part 1 to 3, NIOS Accountancy Chapter 4 Accounting for Business Transactions: Part 1 to 6, NIOS Accountancy Chapter 5 Journal: Part 1 to 3, NIOS Accountancy Chapter 6 Ledger: Part 1 to 4, NIOS Accountancy Chapter 7 Cashbook: Part 1 to 3, NIOS Accountancy Chapter 8 Special Purpose Books: Part 1 to 3, NIOS Accountancy Chapter 9 Bank Reconciliation Statement: Part 1 to 2, NIOS Accountancy Chapter 1 Basic Accounting: Part 1 to 5. It reveals profit or loss for a given period and the value and the nature of a firm’s assets and liabilities and owners’ equity. A book on Arthashasthra written by Kautilya who a minister in Chandra Gupta was’ s kingdom twenty-three centuries ago mentions about the accounting practices in India. The recording of business transactions is done in such a manner that necessary financial information is summarized as per well-established accounting practice. It describes how accounting records have to be maintained. In the latter case, the transaction forms record information in a predetermined set of accounts (which can be … The financial information is regularly communicated through accounting … In his book he used present day popular terms of accounting Debit (Dr.) and Credit (Cr). Organisation: refers to a business enterprise whether for profit or not for profit motive. For example, goods purchased for cash or on credit will be recorded. He also discussed the details of memorandum, journal, and ledger and accounting procedures. Thus, its scope is quite wide. Include references in the footnotes section of your review. That is why important items like appointment, signing of contracts, etc., are not shown in the books of accounts. Asset = Liabilities + Equity. For this project, you must submit the following: The financial information must be submitted using the Financial Review Template. It is to maintain systematic records of financial transactions. You work as the accountant of a sole proprietorship, Jamie’s Consulting. Communication: The economic events are identified, measured and recorded in such a manner that necessary information is generated and communicated in a certain form to management and other internal- external users of information. Accounting is a service-based profession that provides reliable and relevant financial information useful in making decisions. Resources owned or controlled by a company that are expected to yield future benefits. For accounting, advanced and in-depth knowledge and understanding is required. Refer to the accounting equation to determine whether each account type results in an increase or decrease of the account. She is unfamiliar with financial accounting practices and asks you to write a brief that will prepare her for communicating the reliability of the financial information to the bank.

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