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…
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…
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…
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…
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…
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….
Entity concept In the , the transactions or expenses of the business owner and the business should be kept separate to avoid confusion when reviewing the books. The concept of entity is one of the concepts most studied by accountants. It is a useful concept used to avoid confusion between the business owner’s personal accounts and your…
Accrual concept An accrual is a journal entry that can be used to recognize income and expenses that have been earned and spent. It is important to note that in this situation, the cash amounts that have been earned or spent have not yet been received or paid. Auditors only accept financial statements that have previously…
The most important terms in accounting Entity concept Accrual concept Going Business Concept Conservatism concept Realization concept Matching concept Materiality concept Consistency concept Double entry concept Cost concept: The most important terms in accounting The dictionary of the RAE defines accounting as “System adopted to keep the account and reason in public and private offices.” Due to this somewhat boring…
What institutes and specialized organizations in accounting exist in Spain? University institutions where to study a degree or postgraduate degree in accounting Professional training in accounting and educational center Other types of accreditations in accounting: What institutes and specialized organizations in accounting exist in Spain? «… a scientist must in fact be freely imaginative and…
