Rjb Accounting

Introduction to Accounting Principles There are general rules and concepts that govern the field of accounting. These general rules–referred to as basic accounting principles and guidelines–form the groundwork on which more detailed, complicated, and legalistic accounting rules are based. For example, the Financial Accounting Standards Board (FASB) uses the basic accounting principles and guidelines as a basis for their own detailed and comprehensive set of accounting rules and standards. The phrase "generally accepted accounting principles" (or "GAAP") consists of three important sets of rules: (1) the basic accounting principles and guidelines, (2) the detailed rules and standards issued by FASB and its predecessor the Accounting Principles Board (APB), and (3) the generally accepted industry practices. If a company distributes its financial statements to the public, it is required to follow generally accepted accounting principles in the preparati...

Objectives of Accounting The broad objects of Accounting may be briefly stated follows: 1. To maintain the cash accounts through the Cash Book and to find out the Cash balance on any particular day. 2. To maintain various other Journals for recording day-to –day non –cash transactions. 3. To maintain various Ledger Accounts to find out the exact amounts of incomes and expenses or gain and losses or receivables and payables. 4. To furnish information regarding Purchases and Sales, both Cash and Credit. 5. To find out the net profit or net loss or surplus or deficit for any particular period. 6. To find out the total capital on a particular date. 7. To find out the positions of assets on a particular date. 8. To find out the position of liabilities on a particular date. 9. To detect any defalcations and to check the frauds and misappropriations of money. 10. To detect the various errors and to rectify those through entries in the journal proper. 11. To confirm ...

Accounting Theory There is always a reason behind each and every action of a human being. A man does not anything without any sound reason.   Regarding Finance, or financial matters, a man is always extra cautious and so, he never makes any financial transaction without any reason. As accounting deals with financial transactions, so every accounting work is also based on reasoning. Accounting Theories always try to explain with reason, the logic underlying a particular practice. Generally Accepted Accounting Principles cannot be changed completely as they are widely and universally accepted but they can be reformed and remoduled to suit the needs of any changed Society or Economy. Accounting Theories point out to the scientific ways of thinking for the solution of any real world accounting problem.   According to Prof.Hendriksen, “Accounting Theory may be defined as logical reasoning in the form of a set of broad principles that provide a general frame of reference by whic...