Why Do We Need Accounting?

What’s the point of accounting? If you ask an accountant that question, they may look at you like you’ve grown two heads. The real question should be, why wouldn’t we need accounting? It’s the backbone of our businesses and finances, the reason we were able to develop trade and commerce centuries ago. Without accounting, we wouldn’t have the […]

Why
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Going concern concept – meaning.

This concept assumes that the business enterprise will continue to operate for a fairly long period in the future. The significance of this concept is that the accountant while valuing the assets of the enterprise does not take into account their current resale values as there is no immediate expectation of selling it. Moreover, depreciation on fixed assets is charged … Read the rest