logo

Dual Aspect Concept | Duality Principle in Accounting

9 Pages1731 Words179 Views
   

Added on  2019-12-18

Dual Aspect Concept | Duality Principle in Accounting

   Added on 2019-12-18

ShareRelated Documents
Introduction to Financial Accounting
Dual Aspect Concept | Duality Principle in Accounting_1
Table of ContentsINTRODUCTION......................................................................................................................3MAIN BODY.............................................................................................................................3Assessing the element of balance sheet with examples.........................................................3Materiality concept.................................................................................................................4Duality aspect concept...........................................................................................................4Going concern concept...........................................................................................................4Money measurement concept.................................................................................................5Business entity concept..........................................................................................................5CONCLUSION..........................................................................................................................6REFERENCES...........................................................................................................................7Figure 1: Income statement........................................................................................................4Figure 2: Balance sheet..............................................................................................................5Figure 3: Materiality concept.....................................................................................................6
Dual Aspect Concept | Duality Principle in Accounting_2
INTRODUCTIONFinancial accounting is highly concerned with the preparation, analysis and recordingof business transactions. On the basis of this aspect, manager of firm prepares financialstatements by taking into consideration the standardized accounting rules and principles. Inthis, present report will develop understanding about the elements of final accounts. Besidesthis, it will also shed light on the different types of accounting concepts which are undertakenby finance personnel for the preparation of financial statements.MAIN BODYAssessing the element of balance sheet with examplesIncome statement: Profitability statement is usually prepared by businessorganization at the end of accounting year with the aim to assess profit generated by it overexpenses. Hence, such statement renders information about sales revenue, gross, operatingand net profit generated by firm during the year. Moreover, profit is the major factor whichclearly provides information about financial performance of firm. Besides this, suchstatement also provides deeper insight about direct and indirect expenses which are incurredby firm. Direct expenses include COGS which is directly associated with the production ofcost object such as material and labor (Lee and et.al., 2017). On the other side, indirectexpenses include sales and general administration, miscellaneous expenses, interest andtaxation. Thus, by deducting all such expenses from gross margin business unit getinformation about its operating and net profit. Such statement is highly significant which inturn helps company in assessing the profit attained by performing the business activities andfunctions. By undertaking this, business organization can develop highly competent andpolicy framework for the near future.
Dual Aspect Concept | Duality Principle in Accounting_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Introduction to financial accounting : Assignment Sample
|14
|4333
|109

Finance and Funding in Travel and Tourism
|9
|440
|141

Business Decision Making: Profitability Statement, Balance Sheet, Limitations, and Working Capital Management
|7
|1043
|393

Managing Financial Resources - Clariton
|12
|1846
|84

Report on Accounting, Depreciation, Suspense and Clearance Account
|33
|4290
|229

Assignment on Financial Management (Docs)
|9
|2580
|466