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  Basic Accounting Concepts

Introduction to Basic Accounting Concepts

Financial accountants generate financial statements based on usually accepted accounting principles of a respective country. Particularly cases financial statements have to be prepared as per to the International Financial Reporting Standards.

Financial accounting serves for the following purposes:

  • 1st purpose- Generating general purpose financial statements
  • 2nd purpose- producing information employed through the management of a business entity for decision making, planning and performance evaluation
  • 3rd purpose- Producing financial statements for meeting regulatory needs.

Objectives of Financial Accounting

  • To make out the results of the business
  • To determine the financial position of the business
  • To make sure control over the assets
  • To make easy proper management of cash
  • To give requisite information

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