What Is Accounting? Understand Simple Accounting Principles

Some of the simple accounting terms that you will understand incorporate revenues, costs, assets, liabilities, income statement, balance sheet, and statement of money flows. For financial records to be consistent, accountants usually call for their clientele to methodically record their financial transactions employing the consistency principles. Likewise, in case revenues received in advance for which the solutions have not been rendered will be treated as ‘unearned income’, and hence, it will be carried forward to the following accounting period.

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