accounting principles

Accounting principle is the basic principle of accounting, which refers to the confirmation, measurement, recording and reporting of economic matters according to certain methods and procedures under certain preconditions, so as to provide true, accurate, timely and complete accounting information.

1. Accounting principles mainly include basic accounting assumptions: basic accounting assumptions are the basic premise of accounting, including accounting entity, going concern, accounting stage and monetary measurement. These assumptions form the basis of accounting and provide the preconditions for accountants to carry out their work.

2. Accounting elements: Accounting elements are the basic classification of accounting objects, including assets, liabilities, owners' equity, income, expenses and profits. These elements constitute the basic framework of financial statements and provide accountants with the basis for accounting economic matters.

3. Accounting subjects: Accounting subjects are items formed by classifying and naming accounting elements according to the nature and characteristics of economic matters. By setting reasonable accounting subjects, we can accurately reflect the essence and characteristics of economic matters and improve the readability and usability of accounting information.

4. Accounting entries: Accounting entries are the combination of accounting symbols and account names for recording economic events. It can help accountants accurately record the occurrence and changes of economic events and reflect the internal relations and mutual relations between accounts.

5. Financial statement: Financial statement is the final result of accounting, including balance sheet, income statement and cash flow statement. These reports can provide information about the financial status, operating results and cash flow of enterprises, and help stakeholders make decisions and management.

The purpose of accounting

The purpose of accounting is to provide accurate and reliable accounting information. Accounting personnel can accurately reflect the financial status, operating results and cash flow of an enterprise by confirming, measuring, recording and reporting economic matters.

2. This information can help business leaders make correct decisions, such as making financial plans, controlling costs, and making investment decisions. At the same time, this information can also help investors, creditors and other stakeholders to understand the operation and financial situation of the enterprise, so as to make investment and management decisions.

3. The purpose of accounting is to provide timely and complete accounting information. Accountants need to record and report the economic affairs of the enterprise in time, so that stakeholders can know the operation and financial situation of the enterprise in time.

4. At the same time, accountants also need to provide complete accounting information, including information on income, expenses, profits, assets and liabilities, so that stakeholders can fully understand the operation and financial situation of the enterprise.