Accounting concepts in daily business &professional life
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Can you apply any of the concepts financial statements and profit maximization to your daily business or professional life? How?
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The answer describes the application of accounting concepts and profit maximization in daily business and professional life. Whether one can apply the concepts of financial statements and profit maximization to your daily business and personal life is determined.
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Can you apply any of the concepts financial statements and profit maximization to your daily business or professional life? How?
Financial statements are trading, profit and loss account, Balance sheet and cash flow statement. Financial statements are prepared on the basis of the following accounting concepts:
1. Going concern: This concept implies that the financial statements are prepared on the basis that the company will go on forever.
2. Consistency: Transaction and valuation methods should be followed in the same way from year to year. Then only, it is possible for the owner to compare the performance of the company from year to year. If there is any change, the change must be disclosed in the financial ...
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