Principles and Assumptions Used in Preparing Accounting Statements Essay

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1. definition of accounting: [2]
*"Accounting is a set of principles and procedures relating to the registration and compilation, analysis and interpretation of financial data for the purpose of determining the outcome of business and its financial position".
* "A method of recording and tabulating and summarizing operations and financial events and then interpret the results".


2.Assumptions used in accounting: [1]

What assumptions used in accounting is generally predict solutions through experimentation of phenomena to upgrade them to the level of reality through the use of a combination of induction and deduction, and when the results to an acceptable degree of accuracy, it can be considered the evidentiary obligation accepted and valid, and perhaps the most important accounting hypotheses are:

I. The imposition of a legal person:

This assumption is based on the understanding that any accounting module is independent and separate from the owners of the project. This assumption leads to the financial statements prepared for the accounting unit for the unit and is not related to operations relating to owners ' accountability for the assumption of independence of economic unity of the personality of the owners making financial statements that the Unit prepared for the operations unit and special operations are not shareholders or staff, in this sense, different accounting statements prepared by the accountants are considered from the point of view of the accounting unit and accounting unit.

II. a hold:

Under this assumption the composition of any accounting module is to continue its activity indefinitely until the final liquidation. This is essential to justify imposing rules of accoun...

... middle of paper ... to determine income accounting period.

As explained above, the accounting science as the rest of the social sciences and Humanities founded, principles and assumptions because of accounting theory cannot reach the effect without a unified subject fundamentals of this science in all countries of the world, hence we have to address the accounting principles and assumptions that underlie accounting in order to put the reader in the perception of accounting and its principles. [1]

[1] Dr. Walid Naji alhayaly, accounting ballistic "problems of measurement and accounting disclosure", a nostalgic House Publishing ,first edition, Oman, 1996, p. 27. May. 17, 2014

[2] Abu Abdul-Aziz. Accounting, October.25, 2005. May. 17, 2014

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