Archives for January 2012

Basic Accounting Equation

Understanding the basic accounting equation is essential in learning and doing the accounting process. This equation is often used in the accounting procedures, from recording until interpretation of the financial data. What is the Basic Accounting Equation? Basic Accounting Equation states that the business resources (assets) are attributable to the amount owed to creditors … [Read more...]

Basic Accounting Principles and Concepts

Accounting is referred to as "the language of business" because it communicates the financial condition and performance of a business to interested users.In order to become effective in carrying out the accounting procedure, as well as in communication, there is a widely accepted set of rules, concepts and principles that governs the application of the accounting. These … [Read more...]

What is a Stakeholder?

Accounting is defined as the language of business. Accounting is a mean by which business financial information is communicated to its stakeholders.In this article, you will learn about the definition of a stakeholder ~ the users of accounting information ~ and how they use such financial reports to their decision making. Users of Accounting Information A stakeholder is … [Read more...]

Areas of Accounting

Commonly, accounting is misinterpreted and perceived to only be about recording of business transactions, also known as bookkeeping. However, accounting is beyond recording or bookkeeping and it’s a diversified profession. It has many areas and specialized fields which are all useful in catering the needs of a business or non-profit organizations. Bookkeeping, or the process of … [Read more...]