Accounting the language of business

Accounting principles are like the rules in a game.

Generally Accepted Accounting Principles (GAAP) It ensures that financial information is presented in a way that everyone can understand, no matter the business or industry. Entity Concept Consider your personal wallet and your work's cash register. The entity concept says these are separate – your money isn't the company's money. Money Measurement Concept This concept says we record transactions measurable in money terms only. Business

Owner is very experienced. This is important but can’t be measured in money terms, so it has no relavance in Accounting. Going Concern Concept Business will function without the threat of liquidation for the foreseeable future (at least 12 months) It lets us plan for the future without assuming the business will suddenly stop. Cost Concept Think of your phone. Its value in the books is what you paid, not its current market price. That’s the cost concept – assets are recorded at their historical cost.

Dual Aspect Concept Every transaction has two sides, like a seesaw. You buy a laptop (debit), and you pay cash (credit). What we do FinXpres provides a fully integrated Accountancy, Taxation and Business Support service to sole traders, partnerships and limited companies. We can be reached at Call: 011-35052846 Whatsup: 99533 40695 Email: manage@finxres.com