Accounting bases refer to the methods and techniques used to apply fundamental accounting concepts to financial transactions and items when preparing financial statements. The specific bases adopted by an organization form its accounting policies.
An overview of basic theoretical ideas devised to support the activity of accounting. These concepts form the fundamental principles needed for producing comparable, relevant, reliable, and understandable financial information.
An Adjusting Journal Entry (AJE) is an entry made in an accounting journal to allocate income or expenses to the period in which they actually occurred, typically as a part of the end-of-period adjustments to the financial statements.
In the USA, a development-stage enterprise is defined as a business that is employing all its resources to establish itself, where either the planned sales phase has not commenced or no significant revenues have yet been generated.
Financial accounting is the branch of accounting concerned with classifying, measuring, and recording the transactions of a business, ultimately presenting the performance and financial position of a business through standardized financial statements.
Financial Capital Maintenance is an accounting concept that stipulates a company must generate enough revenue to cover both operational costs and maintain its equity capital intact over a set period.
The Statement of Financial Accounting Concepts (SFAC) is a set of guidelines that provides a framework for the creation, presentation, and interpretation of financial reports prepared by the Financial Accounting Standards Board (FASB).
UK GAAP refers to the practices followed by British accountants in preparing company accounts, governed by accounting standards, theoretical accounting concepts, and legal requirements. These are increasingly critical in determining taxable profits.
