The accounting system is the series of tasks and records of an entity by which transactions are processed as a means of maintaining financial records. Such systems identify, assemble, analyse, calculate, classify, record, summarise, and report transactions and other events.
Accounting records only those transactions which can be expressed in monetary terms.
The importance of money measurement concept is that money provides a common denomination by means of which heterogeneous facts about a business enterprise can be expressed and measured in a much better way. For e.g. When it is stated that a business owns TZS.1,00,000 cash, 500 tons of … Read the rest
It is generally accepted that the moment a business enterprise is started it attains a separate entity as distinct from the persons who own it.
In recording the transactions of a business, the important question is:
How do these transactions affect the business enterprise? The question as to how these transactions affect the proprietors is … Read the rest