What is the basis of financial accounting? What is Accounting Fundamentals

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

In the history of accounting, the publication of Pacioli's double-entry bookkeeping work and the emergence of the accounting profession are generally regarded as two milestones in the history of modern accounting.

Accounting is an applied discipline that studies the collection, classification, synthesis, analysis and interpretation of financial activities and cost data to form an information system to assist decision-making and effectively manage the economy. The object of study in accounting is the movement of funds.

Accounting Fundamentals provides financial reporting. Financial reporting is useful for stakeholders such as managers, regulators, shareholders, employees, etc. At the heart of accounting is double-entry bookkeeping, which requires at least two economic entities for every business.

In one account and in another account, all debits should be equal to all credits, i.e., there must be credits and borrowings, and loans must be equal. If the borrowing and borrowing are not equal, then there must be an error, so double-entry accounting itself provides an easy way to check for errors.

Basic accounting refers to the basis of accounting transactions, which is a standard method of accounting recognition and the standard for the recognition of unit income, expenditure and expenses. The different choices of the accounting basis determine the ratio of income and expenditure in the accounting period, and directly affect the performance and financial results of the unit.

Accounting is an applied discipline that specializes in the study of accounting theories and methods. It is a theory abstracted from accounting practice to guide practice. Accounting belongs to the economic sciences.

It uses a range of economic theories and categories to build its concepts and methods. Accounting is a management science. It shares a particular aspect of economic management.

Accounting is closely related to mathematics. Various accounting methods and techniques are inseparable from mathematics. The relationship between accounting and statistics.

are quantitatively described socio-economic activities.

According to its research content, accounting mainly includes basic accounting, financial accounting, financial management, cost accounting, management accounting and auditing.

Basic Accounting clarifies the fundamentals, basic methods, and techniques of accounting.

Financial accounting clarifies the basic theories and methods of accounting for various assets, liabilities and owners' equity; Financial management studies the theories and methods of fundraising, management, and effective utilization.

Cost accounting clarifies the basic theories and methods of planning, calculation, analysis, control, and decision-making of costs.

Management accounting clarifies the basic theories and methods of how to comprehensively use enterprise accounting information in combination with enterprise operation and management.

Auditing clarifies the basic theories and methods of inspecting and supervising the legality, compliance, rationality and efficiency of economic activities.

According to the different objects of use, it is divided into financial accounting and management accounting;

According to the nature of the accounting entity, it is divided into for-profit organization accounting and non-profit organization accounting;

Depending on the scope of the accounting object, macro accounting is the same as micro accounting.

It is necessary to understand the purpose of the accounting account, understand the relationship between debit and credit in accounting, and when making accounting entries, what is the situation of debit and what situation is recorded. This is the most basic accounting knowledge.

The main thing is to learn the accounting entries well, which is the focus of the accounting foundation, and the rest of the understanding is enough, which is enough to deal with the exam.