Accounting for Business: Concepts and Attributes of Financial Reports

Accounting for
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
accounting concepts to prepare financial statements with example.......................................1
Attributes of financial report..................................................................................................2
CONCLUSION................................................................................................................................3
References:.......................................................................................................................................3
Books and Journals.................................................................................................................3

INTRODUCTION
Accounting refers to the basic assumption of the rules in order to record the business
transaction and to prepare accounts on basis of daily work and transactions (Andiola, Masters
and Norman, 2020). The primary aim of accounting in business is to preserve the uniformity and
consistency of the monetary amount. Counting simply means collecting and analysing
information derived from the business transactions which are acceptable and adaptable by the
stakeholders and all the other business. The present report will discuss five accounting principles
usually preparation of a financial statement. Further in the report significance of financial reports
are discussed.
MAIN BODY
TASK 1
accounting concepts to prepare financial statements with example
Business entity concept: for the accounting purpose business entity and the owner are
considered as the two different and independent entities (Birt and et. al., 2020). This accounting
concept in which the business and the personal transactions of an owner as separate is basis of
the finance. The four in the accounting records the books of the accounts are made on the
viewpoint of a business unit not on the persons owning the business. For example: Mr XYZ start
the enterprise by the investing £200000. The owner purchased the goods at £60000, tables and
chairs for 10000 and factory items of 10000, remaining amount of 20000 is in hand. All these
assets of enterprise not of stakeholder therefore in accounting £100000 will be treated as
business capital.
Money measurement concept: As per this concept business transactions and the form of
the money which is basically in the form of the currency of the country. Transactions are in the
terms of the Euros. This is significance of the money measurement concept which is described as
an accountant to record as it assist in recording the business dealings uniformly and also in terms
of the fiscal.
Accounting period concept: Business financial dealings are stored in books of accounts
all in the profits and business transactions will be a safety and for the particular period of time
this concept is referred as the accounting period concept basically it requires the balance sheet
and P&L account and this should be arranged regularly (Dressler and Rachfall, 2020).
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