Success Roar Classes

Concept Explanations

Accounting Principles and Assumptions

Accounting Principles and Assumptions - Success Roar Classes

What is Accounting Principles? Accounting principles refer to those set of rules which provide the basic idea, parameters, limitations for implementing the accounting process in a well-defined manner. These rules are also called Generally Accepted Accounting Principles or GAAPs. (Accounting Principles and Assumptions) Principles of Accounting are the general law or rule adopted or proposed …

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Qualitative characteristics and Role of Accounting Information

Qualitative characteristics and Role of Accounting Information - Success Roar Classes

What are the qualitative characteristics of Accounting? Qualitative characteristics = attributes of accounting information (enhance its understandability and usefulness) Reliability Reliability means that the users can rely on the authenticity of the financial information. The information can be said reliable when- It is based on facts or supporting documents and free from material errors. Where …

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Accounting Terminologies-I

Accounting Terminologies - Success Roar Classes

What is Accounting Terminology? In accounting, certain terms have their specific meanings which are used with the same meaning and sense in the whole accounting process. These terms are known as Accounting Terminologies. For example, if we check for a dictionary meaning of drawings it will define it as “a drawing or art or picture …

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Advantages and Limitations of Accounting

Advantages & Limitations of Accounting - Success Roar Classes

What are the advantages or uses of accounting? Helpful in Management of business- The accounting provides the management various information in the form of internal reports, Financial statements, etc. which helps them in performing the following functions-  Planning– The information regarding increase or decrease in sales, purchases, expenses, etc. helps the management to make a …

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Users of Accounting Information

Users of Accounting Information - Success Roar Classes

Who are the users of accounting information and what their needs? Users of accounting information are those groups of people who are interested in the financial information of the business. Users can be categorized into two categories- Internal users- These are the persons who have a direct interest or involvement in the business for example …

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