What Is Double Entry Bookkeeping? A Simple Guide

The double entry Bookkeeping system of accounting means that for every business transaction, amounts must be recorded in a minimum of two accounts. The double-entry system also requires that for all transactions, the amounts entered as debits must be equal to the amounts entered as credits. What is Double Entry Bookkeeping? Every transaction that affects assets, liabilities, capital, income or … Read more

Basic Accounting Terms – A Quick Guide

If you’re starting to think about pursuing a career in accounting, your first step is to familiarize yourself with some of the basic accounting terms, acronyms, and abbreviations in the field. It seems every industry has its own secret language. And knowing the lingo is an entry point into the inner circle—an indicator that you truly … Read more

What are the Objectives of Financial Accounting?

Financial accounting is the field of accounting concerned with the summary, analysis, and reporting of financial transactions related to a business. This involves the preparation of financial statements available for public use. Stockholders, suppliers, banks, employees, government agencies, business owners, and other stakeholders are examples of people interested in receiving such information for decision-making purposes. … Read more

Who are the Users of Accounting? Explained

Are you wondering Who are the Users of Accounting Information? we have got you covered. An accounting Information System (AIS) is a system that collects, stores, and processes accounting and financial data. This financial data is useful for users of accounting information systems for reporting the financial information to Owners/Shareholders, Managers, Prospective Investors, Creditors, Bankers, … Read more

What are the Generally Accepted Accounting Principles? (GAAP)

Generally accepted accounting principles, or GAAP, are standards that encompass the details, complexities, and legalities of business and corporate accounting. The Financial Accounting Standards Board (FASB) uses GAAP as the foundation for its comprehensive set of approved accounting methods and practices. Accounting principles The rules and guidelines that companies must follow when reporting financial data. … Read more