Accounting Principals

Accounting Principals XXXxxxxXXX ACC 290 April 17, 2012 XXXxxXXX Accounting Principals moneymaking(prenominal) invoice is a method of chronicle system where notes and credit ar recorded in a system that there is no duplication. This is cognise as geminate opening bookkeeping. The two types of accountancy are mavin entrée and double entry. The generally accepted history principle, known as generally accepted write up principles, is employ to prepare, present and writing financial statements for m each a(prenominal) entities. Whereas these accounting practices have a purpose, they also have differences. Commercial Accounting Commercial accounting records the put across 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 e ntry; this records the payment and the root of the payment. Double entry also records any credit 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, parallelism 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 get together States.

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

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