Be qualified to work in the accounting world

A definition of accounting

A definition of accounting How is accounting defined ?: A definition of accounting Accounting definitions there are thousands in dictionaries, encyclopedias, thesauri … if you want to know what this branch refers to, read the following definition that we have specially selected for its precision when describing this discipline. Do you have doubts about what…

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What is business accounting?

What is business accounting?

What is business accounting? BlogArt and leisureAccountingWhat is Accounting in the Business World? Index Introduction to Make accounting YOUR business Brief description of business accounting “He who does not know how to keep his  accounts  for three thousand years remains ignorant in the dark and only lives from day to day.” – Johann Wolfgang von Goethe Introduction to…

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Cost concept

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Cost concept The cost principle  requires accountants to record an asset, liability, or equity at original acquisition cost. It is one of the most common accounting methods used to record transactions for newly purchased items. However, it should be noted that an important issue in the concept of cost is the fact that the “value” of assets…

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Analysis of the meaning of international economics

Analysis of the meaning of international economics

Analysis of the meaning of international economics International economics, like the other major fields of economics, is made up of many  different theories and models, some more mathematical than others. It assesses the impact of trade and investment between countries, including international trade agreements or current policies that may affect such trade and overall economic growth. The international economy…

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Cost concept

Materiality concept

Materiality concept This principle causes accountants to ignore insignificant expenses. However, it is important to mention that you cannot ignore anything. Only expenses that have a small impact on the financial statements of the company and that will not mislead other financial advisers when they read them later can be ignored. According to many legal and accounting…

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Cost concept

Matching concept

Matching concept This accounting concept is used to  avoid the overvaluation of income in a period. The matching idea requires that costs be matched with income to avoid confusion when another financial expert examines the financial documents at a later time. It is important to note that, to correctly fulfill the characteristics of the matching concept, accountants…

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Cost concept

Realization concept

Realization concept The concept of completion indicates the amount of income that must be recorded from a specific sale. The realization method rules help the financial advisor determine that an income or expense has occurred. This concept materializes when the seller receives the cash from the sale of goods or services. In this sense, it is very similar…

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Cost concept

Conservatism concept

Conservatism concept A  key accounting concept  that is to not anticipate profits and to prepare or anticipate all losses. Accountants help businesses and entrepreneurs minimize their  chances of maximum losses, which are achieved by underestimating earnings and profits rather than exaggerating them. This concept may seem strange, but it is done so that the financial statements do not overstate…

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Going Business Concept

Going Business Concept Auditors can analyze the entity’s financial statements and certain factors to determine whether the business should continue to use the going concern concept. The concept of company performance is one of the fundamental concepts of accounting. Accountants using this concept assume that the business will stay in business indefinitely and stick to its current plans….

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