Accounting principles and procedures

Accounting principles and procedures

Accounting Principles:

Accounting principles relating to basic concepts or propositions sets guidelines to which all subsequent development must be subordinated. Its mission is to establish boundaries in economic entities, the basis of the quantification of operations and presentation of financial information.

The accounting principles were established to be applied to the so-called financial accounting and, by extension, generally apply also to management accounting. Management accounting will be planned according to the needs and preferences of each company, which may impose their own regulations. Financial accounting should be planned to provide quantitative, comparative and reliable external users.

Accounting Procedures:

Records management is a step or procedure of accounting. The record keeping forms an extremely important process, since the efficient development of the accounting activities depends to a large extent on the accuracy and completeness of accounting records.

According to H.A. Finney (1982, p.13-24) expressed in his book "Accounting Course" that accounting procedures are:

- Accounts

- Debits and credits

- Charges and credits to the accounts

- Asset Accounts

- Liabilities and Equity Accounts

- Summary of how debits and credits

- Records of operation

- Accounts receivable and payable

- The newspaper and the largest

- Passing the greatest

- Determining account balances

- The trial balance

Appendix 1

Word /expression Meaning in Spanish The sentence that includes the unknown word from the text.

Procedure procedimiento

Accounting principles and procedures.

Guideline Pauta Or propositions sets guidelines to which all subsequent development must be subordinated.

Subsequent Posterior Or propositions sets guidelines to which all subsequent development must be subordinated.

Development Desarrollo Or propositions sets guidelines to which all subsequent development must be subordinated.

Boundaries Limites . Its mission is to establish boundaries in economic entities.

Entities Entidades . Its mission is to establish boundaries in economic entities.

Basis Base The basis of the quantification of operations.

Applied aplicar The accounting principles were established to be applied.

Apply Aplicar Generally apply also to management accounting.

Impose Imponer Which may impose their own regulations.

Reliable Seguro Comparative and reliable external users.

Accuracy Precisión A large extent on the accuracy.

Asset Activo Asset Accounts.

Equity Patrimonial Liabilities and Equity Accounts.

Payable Pagadero Accounts receivable and payable.

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