What are the basic premises of accounting and what are their specific contents

The four basic premises of accounting are: accounting subject, continuing operation, accounting periodization, monetary measurement 1, accounting subject, that is, the specific unit for which accounting serves, accounting should be based on the various economic operations of the enterprise as the object, record and reflect the production and operation activities of the enterprise itself. Clarify this premise, that is, clarify who (which entity) the accountant keeps books and prepares statements.

The accounting entity is not only independent of other accounting entities (any enterprise unit other than the enterprise unit), but also independent of its own owners. 2. Continuous operation means that accounting should be based on the premise of continuous and normal production and operation activities of the enterprise. That is, the enterprise will continue to operate indefinitely in accordance with the established business policy and predetermined business objectives, and will not terminate the liquidation.

When organizing accounting work, it is based on the premise that the accounting entity will not face bankruptcy liquidation in the foreseeable future. With this premise, the assets held by the accounting entity of the enterprise will be consumed in the normal course of business according to the intended purpose, and the debts it bears will be repaid on the predetermined date. This assumption provides a basis for the determination of various expense allocation methods, and only under this premise can the principles of accounting recognition and measurement be further established, such as the historical cost principle, the accrual principle, etc.

3. Accounting periodization refers to artificially dividing the continuous production and operation process of an enterprise into periods with equal intervals, which is called accounting period. Determining the accounting period is good for determining expenses, revenues, and profits in installments. The amount of assets, liabilities and owners' equity at the beginning and end of each period is determined in stages, and the accounts are settled in installments and accounting statements are prepared.

Accounting periodization stipulates the time frame of accounting, which is one of the prerequisites for summarizing production and business activities or budget implementation in a timely manner. Only by specifying a fixed accounting period can the results of the work be compared. The accounting period is usually one year and is called the fiscal year.

The year can also be subdivided into quarters and months. The start and end dates of accounting periods in China are based on Gregorian calendar dates. 4. Monetary measurement refers to the use of RMB as the base currency for accounting.

Enterprises whose business receipts and expenditures are mainly in foreign currencies may also select a certain foreign currency as the base currency of their accounts, but the accounting statements prepared shall be converted into RMB for reflection. When an overseas enterprise prepares and submits accounting statements to the relevant domestic departments, it shall be converted into RMB for reflection. One of the basic characteristics of accounting is that the production and business activities of the accounting entity and its results must be comprehensively reflected through monetary measurement.

Although there are three types of measurement standards: physical, labor, and currency, financial accounting can only use currency as a unified unit of measurement. In fact, the premise of monetary measurement also contains the premise that the value of the currency remains unchanged, that is, according to international accounting practice, when the value represented by the currency fluctuates little, or the fluctuations before and after can offset each other, such change factors can be disregarded in accounting.

The content of accounting refers to the capital movement of a specific entity, including three stages: capital investment, capital circulation, and capital withdrawal. Economic and operational matters include the following: (basically the same as the order of accounting elements).

a) Receipt and payment of money and valuable**.

1.Funds are monetary funds used as a means of payment, mainly including cash, bank deposits and other foreign deposits, bank draft deposits, cashier's check deposits, credit card deposits, letter of credit deposits (other monetary funds), etc.

2.Valuable refers to the right to own or dispose of certain property, such as treasury bills, corporate bonds, etc.

Money and valuable** are the most liquid assets.

2) The receipt, receiving, increasing or decreasing of property and its use (inventory, fixed assets, etc.).

Property is the abbreviation of property and materials, which is the economic resources of enterprises to carry out production and business activities and have physical forms, generally including raw materials, fuels, packaging, low-value consumables, products, inventory commodities and other current assets, as well as fixed assets such as houses, buildings, machinery, equipment, facilities, and means of transportation. Accounting Practitioner Forum.

3) The occurrence and settlement of creditor's rights and debts.

Creditor's right is the right of an enterprise to receive money, which generally includes various receivables and prepayments.

Debt refers to the current obligations that an enterprise needs to repay with assets or services due to past transactions and events, generally including various loans, payables and advances, and payables.

4) Increases or decreases in capital (owner's equity).

Capital is the capital invested by investors to carry out production and business activities. Capital in accounting refers exclusively to the invested capital in the owner's equity.

5) Calculation of income, expenses, expenses, and costs (income, expenses).

Income refers to the total inflow of economic benefits generated by the business in its daily activities that will lead to an increase in the owner's equity and are not related to the capital invested by the owner.

Expenditure refers to the expenses actually incurred by the enterprise, as well as the expenses and losses outside the normal production and business activities.

Expenses refer to the total outflow of economic benefits incurred by the enterprise in the course of its daily activities that will result in a reduction in the owner's equity and are not related to the distribution of profits to the owners.

Cost refers to the various expenses incurred by enterprises in the production of products and the provision of labor services, which are the expenses collected according to a certain product or labor object, and are the expenses of objectification.

6) Calculation and processing of financial results (profits).

Financial results mainly refer to the financial results achieved by an enterprise in a certain period of time by engaging in production and business activities, which are specifically manifested as profits or losses. The calculation and treatment of financial results generally include the calculation of profits, the calculation of income tax, the distribution of profits or the recovery of losses, etc.

7) Other matters that need to go through accounting procedures and carry out accounting.

Accounting entity, going concern, accounting periodization, monetary measurement.

The determination of accounting objects, the selection of accounting methods, and the collection of accounting data should all be based on this. Generally speaking, to understand accounting, one should first understand the basic premise of accounting.

The basic premise of accounting is abstracted from accounting practice, and its ultimate purpose is to ensure the practicability, rationality and reliability of accounting data. The basic premise of accounting includes accounting entity, going concern, accounting periodization and monetary measurement.

1. Accounting entity.

The accounting entity refers to the unit or organization for which the accounting work serves, that is, who the accountant reckes accounts for and what is the scope of accounting services. The role of the accounting entity is to define the scope of accounting carried out by different accounting entities. For enterprises, it requires accounting to distinguish between their own economic activities and the economic activities of other enterprise units, and to distinguish between the economic activities of enterprises and the economic activities of enterprise investors.

2. Continuing operations.

Going concern means that the business activities of the enterprise, as the accounting entity, will continue according to the established objectives and will not face bankruptcy and liquidation in the foreseeable future. It is an extremely important part of the accounting premise. There is a big difference in accounting methods between whether an enterprise continues to operate, cease business, or go bankrupt and liquidate.

3. Accounting periodization.

Accounting periodization refers to the need to divide an enterprise's continuing business activities into several equal periods in order to regularly reflect the operation and management activities of an enterprise and its results.

4. Monetary measurement.

Monetary measurement refers to the use of currency as a unified unit of measurement by the accounting entity in the accounting process to record, settle and report accounts. Accounting should provide information in monetary terms. The economic activities of enterprises are a variety of economic dynamics, which requires a unified unit of measurement.

Under the conditions of the commodity economy, money, as a special commodity, is most suitable to serve as such a unified unit of measurement.

The basic premise of accounting is the basic assumption of accounting: 1. Monetary measurement; 2. Continuing operations. 3. Accounting entity; 4. Accounting periodization.

Monetary measurement: refers to the monetary measurement of the accounting entity in the financial accounting confirmation, measurement and reporting, reflecting the production and operation activities of the accounting entity.

Going concern: It means that the business will continue to operate at its current size and status for the foreseeable future, without going out of business or making significant cuts.

Accounting entity: refers to the spatial scope of enterprise accounting recognition, measurement and reporting.

Accounting periodization: refers to the division of the production and operation activities of an enterprise's continuous operation into continuous periods of the same length.

How to write accounting entries:

1.When you have time, you can memorize more accounting subjects, or write more and memorize the accounting subjects, so that you can write accounting entries. This is important.

2.And then you have to figure out the various classifications, asset classes, liability classes, and owner's equity classes, which all have to be understood, 3The next thing is to know which ones are borrowing more and what are borrowing and decreasing.

Usually, the asset class is the increase in borrowing and the decrease in loans, and the liabilities and owners' equity classes are the increase in borrowing and decreasing loans. But there are some exceptions, such as accumulated depreciation.

4.To learn the use of formulas, the most basic and the formulas that need to be deduced, we must understand the principles and use them easily.

5.The next step is to be able to analyze, a question is in front of you, you have to analyze which accounts are involved, what type they belong to, whether they are increasing or decreasing, if it is an asset class and increasing, debit, and so on.

6.Finally, don't forget to check, according to "there is a loan, there must be a loan, and the loan must be equal" to check whether the accounting entry you wrote has a debit and a credit, whether the amount is equal, and if you don't wait, it is a mistake, and you have to re-check and write.

Before keeping accounts, the accounting entries are prepared through the accounting vouchers, so that the classification of the brokerage business can be clear at a glance, the correctness of the account records is guaranteed, and the post-inspection is easier. Each accounting entry mainly consists of the accounting symbol, the relevant account name, summary and amount.

The basic premise of accounting is the basic assumption of accounting: 1. Accounting subjects (accounting entities, accounting entities); 2. Continuing operations. 3. Accounting periodization. 4. Monetary measurement.

Accounting exists in a certain economic, cultural and political environment, and it is inevitably limited and constrained by the environment in which it is located. In order to adapt to environmental constraints, the accounting profession has developed some accounting assumptions, which are internationally known as accounting assumptions, and have adopted them as important guiding principles for the formulation of accounting standards.

There are four basic accounting assumptions put forward in China's basic standards: accounting entity, going concern, accounting periodization, and monetary measurement.

In July 1989, the International Accounting Standards Board (IASC) put forward two basic assumptions in its conceptual framework: accrual and going concern. It is not that ISC does not disagree with the assumptions of accounting entities, periodization and monetary measurement, but rather that they have been followed in the standards it has developed.

In a market economy, they argued, these basic assumptions are logical.

1. Accounting entity.

A separate entity is a specific and independent economic entity that provides accounting services. In other words, the accounting subject refers to the object of accounting services.

2. Continuing operations.

Continuity means that the company will not face bankruptcy and liquidation in the foreseeable future, but will continue to operate.

This premise is the conceptual basis for many accounting classifications. For example, under this premise, assets and liabilities can be divided into current and long-term. If this premise does not exist, all assets and liabilities can be considered liquid, and there is no clear boundary between current and long-term.

3. Accounting periodization.

In order to meet the periodic needs of report users for financial information, artificially dividing the continuous business process into several periods is called time period.

Although it is impossible to predict the operating results of an accounting entity before the completion of its life cycle, it is necessary to provide financial statements at certain intervals in order to meet the regular needs of users of financial statements.

4. Monetary measurement.

The premise of monetary measurement (unit-of-measure) refers to the measurement of the accounting measurement and reporting of the economic activities of the accounting entity with the unit of measurement of currency as the unit of measurement of the accounting entity.

The monetary measurement premise is called the unit of measurement assumption in the West.

The premise of monetary measurement has two meanings:

One is that it means that accounting only records those economic activities that can be measured in monetary units.

Example. In January 2001, Jinhai Company changed the personnel of the company's upper management very much, dismissed a group of people, and introduced a group of people at the same time. It will have a great impact on the future operation of the company, but because its impact cannot be measured in money, this impact is not measured in accounting, and it cannot be accounted for accordingly.

Second, the premise of monetary measurement implies the assumption of currency stability.

For more details, please refer to the textbook on accounting.