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Accountancy/Introduction to Accountancy
< Accountancy
Contents [hide]  * 1 What are the Rules of news report? * 2 The Nature of Accounts: Definitions * 3 Overview of the bill cycle * 3.1 Debits and assign * 4 Separate Entity Concept * 4.1 Journal Entries * 4.2 T-Accounts * 4.3 Ledger Accounts * 4.4 Types of Accounts * 4.4.1 succinct of types of account * 5 Basic Accounting Principles * 6 monetary Statements * 7 Basic Accounting Classes Course Notes * 8 Resources|
[edit] What are the Rules of Accounting?
Accounting is the mechanism used to put down activities and minutes that occur within a business. In its simplest terms, Accounting is the verbiage of business. However, in society to fall in an understandable record, a sample set of rules for business relationship within the U.S. has been established. These rules are called the Generally trustworthy Accounting Principles (GAAP), and all U.S. businesses are expected to follow them.
The offset general rule of accounting is that every transaction is recorded. It has been verbalise that businesses that do not record transactions, or incorrectly record transactions, are committing fraud, although this is not necessarily the case.



Fraud is part of a much broader area called material misstatement which also can acknowledge error. An error is not necessarily fraud under the law. epoch there are exceptions to this rule, the guidance for applying those exceptions is specifically defined by GAAP, and is applicable to all businesses.
The second general rule of accounting is that transactions are recorded using what is called a double-entry accounting method. Originally developed in Italy in the 1400s, double-entry means that for a complete record of a transaction, two entries are made. For example, if you have $5 in cash, and want to buy some flatulence for your lawn mower, you take your portable flatulency can and your money to the gas station and exchange $5 in cash for $5 in gas. This...If you want to get a full essay, order it on our website: Orderessay



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