Accounting Principals

Accounting Principals XXXxxxxXXX ACC 290 April 17, 2012 XXXxxXXX Accounting Principals moneymaking(prenominal) invoice is a method of insure where cash and credit are recorded in a system that there is no duplication. This is cognise as doubling opening bookkeeping. The two types of news report are mavin accession and double entry. The generally accepted account principle, known as generally accepted be principles, is employ to prepare, present and report financial statements for m each a(prenominal) entities. Whereas these chronicle practices have a purpose, they also have differences. Commercial Accounting Commercial accounting records the know or payment of cash, no separate receipt or payment record is maintained. An exercising would be a cash sale, where the transaction is complete after the exchange of cash for the goods. This is called a single entry in accounting. The separate accounting term is double book entry; this records the payment a nd the parentage of the payment. Double entry also records any credit transactions much(prenominal) as electric bills. GAAP is the generally accepted accounting principles, these rules are used when preparing the inform of financial statements, such as, income statements, difference sheets, and the cash flow statements. These accounting principles are standardized, and are used for the many private and in public traded companies in the linked States.

Potential creditors and investors use these forms and the information provided on them when making decisions about the companies. GAAP is used thr ough mensuration principles, such as when a! transaction is recorded. This also shows the time of the items within the accounting period. These determine what specific numbers and other information are necessary to be presented in financial statements. GAAP reviews: The step of economic employment; The time when such measurements are to be made and recorded; The disclosures surrounding this activity; And the preparation and presentation...If you compliments to get a full essay, guild it on our website: OrderCustomPaper.com

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