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MEANING Principles are the general guidelines to action. Principles provide a base for performing some kind of task or action. Accounting Principles are the base as per which the books of accounts are maintained as well as accounting process is performed. ACCORDING TO AICPA “A general law or rule adopted or professed as a guide…
MANAGEMENT AS A SCIENCE Science is a systematic and scientific body of knowledge which has some universally applicable laws. The theories or laws are originated after a continuous observation and experimentation capable of verification. Management as a science possesses the features of the science which are as follows: SYSTEMATISED BODY OF KNOWLEDGE: Management is viewed…
MANAGEMENT IS AN ART Management is an art if it qualifies all the attributes of the art. An art is regarded as systematic application of skill or knowledge in achievement of goals. Art presents the methods and ways of doing things or tasks. It is a personalized process and based on the practice over a…
Cash and Mercantile System of accounting Cash and Mercantile system of Accounting is as follows: CASH BASIS OF ACCOUNTING Under cash basis of accounting, the transactions are recorded when actual cash is received or paid. It means, the income is recognized when cash is received and the expenses are recognized when the cash is paid….
BASIS OF ACCOUNTING- MEANING The basis of accounting is a set of rules that are followed by the accountant for preparing the financially reports like profit and loss account, balance sheet and cash flow statement. The basis of accounting tells about when and which transaction is to be recognized and how to record those transactions…
BRANCHES OF ACCOUNTING The advancements and continuous evolution of the commerce, trade and industry in the world has lead to the increased scope of the accounting. As a result, the different Branches of Accounting come into existence which is as follows: FINANCIAL ACCOUNTING Financial Accounting involves preparation of accounting records for a particular period of…
MEANING Process of Management includes planning, organising, staffing, directing, coordinating and controlling in order to achieve the organizational goals effectively and efficiently. ACCORDING TO LOUIS ALLEN “Management is what manager does.” ACCORDING TO HENRY FAYOL “To manage is to forecast and plan, to organize, to command, to co-ordinate and to control.” ACCORDING TO GEORGE R…
DIFFERENCE BETWEEN BOOK KEEPING AND ACCOUNTANCY Book-Keeping is an art and science of recording business transactions in a systematic and chronological order. It is a combination of two words: Book + Keeping. It means to keep the books of accounts to record all the financial transactions. It is concerned with identification of transactions and events,…
DIFFERENCE BETWEEN ACCOUNTING AND ACCOUNTANCY To understand the Difference Between Accounting and Accountancy, these both terms should be understood: Accounting refers to the mechanism of maintaining and keeping the records of the transactions and events and also its analysis and interpretation. It also includes the preparation of final accounts i.e. Trading and Profit and Loss…
DIFFERENCE BETWEEN BOOK KEEPING AND ACCOUNTING To understand the Difference between Book keeping and Accounting, firstly we understand the both terms: Book-Keeping is an art and science of recording business transactions in a systematic and chronological order. It is a combination of two words: Book + Keeping. It means to keep the books of accounts…
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