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Unit 1Unit 1 Basic principles of Accounting

Basic principles ofAccountingWhat is Accounting ? Accounting is concerned with two separatebut COMPLEMENTARY business activities: The detailed recording of all the financial transactions of thebusiness (called bookkeeping). The preparation of periodic statements (or accounts) whichsummarise the detailed information, so that the financialperformance of a business can be of the financial details follows certain procedures andthese records bookkeeping s end product become the rawmaterial for the production of the final accounts of the module deals primarily with the first of these two aspectsof Accounting , covering in depth the purposes and conventions ofaccounting, the sources and recording of information and theways in which records are verified.

Basic principles of Accounting What is accounting? Accounting is concerned with two separate but COMPLEMENTARY business activities: • The detailed recording of all the financial transactions of the business (called bookkeeping). • The preparation of periodic statements (or accounts) which summarise the detailed information, so that the financial

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