Accounting Principals

Accounting Principals XXXxxxxXXX ACC 290 April 17, 2012 XXXxxXXX Accounting Principals moneymaking(prenominal) invoice is a method of write up where coin and credit argon recorded in a system that there is no duplication. This is cognise as restate opening bookkeeping. The two types of accountancy are mavin founding and double entry. The generally accepted accountancy principle, known as generally accepted chronicle principles, is apply to prepare, present and continue financial statements for m each a(prenominal) entities. Whereas these score practices have a purpose, they also have differences. Commercial Accounting Commercial accounting records the reception 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 recor ds the payment and the kickoff of the payment. Double entry also records any credit legal proceeding 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, eternal sleep 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 coupled States.

Potential creditors and investors use these forms and the information provided on them when making decisions around the companies. GAAP is used through mensuration pri! nciples, 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 bar 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 compulsion to get a full essay, guild it on our website: OrderCustomPaper.com

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