Accounting conventions & accounting process

Jun 2nd, 2015
Studypool Tutor
Northwestern State University of Louisiana
Price: $10 USD

Tutor description

Accounting convention: 1. Double-entry book-keeping – one account is debited and the second account is credited 2. Sum of debits = sum of credits 3. Based on funds flow principle, any transaction bringing in funds – transaction is credited and the transaction taking funds out is debited 4. A business enterprise has income, expense, assets and liabilities 5. Sum of assets = sum of liabilities 6. Income and expenses are a part of ‘Profit and loss’ account while assets and liabilities form a part of ‘balance sheet’ 7. These two are the financial statements arising out of financial accounting, usually prepared at the end of the accounting period

Word Count: 225
Showing Page: 1/2
Date: 18.07.2009Accounting conventions & accounting process:Accounting convention:1. Double-entry book-keeping one account is debited and the second account is credited2. Sum of debits = sum of credits 3. Based on funds flow principle, any transaction bringing in funds transaction is credited and the transaction taking funds out is debited4. A business enterprise has income, expense, assets and liabilities5. Sum of assets = sum of liabilities6. Income and expenses are a part of Profit and loss account while assets and liabilities form a part of balance sheet7.

Review from student

Studypool Student
" <3 it, thanks for saving me time. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1828 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors