Unit 1 - Individual Project 1

Unit 1 - Individual Project 1 - Accounting Principles...

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Accounting Principles 1 Running head: Accounting Principles Accounting Principles David Lee Watkins American Intercontinental University Online Professor Sunny Onyiri ACCT205-1004A-09: Principles of Accounting I August 29, 2010
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Accounting Principles 2 Accounting Principles 1) Describe for the students the primary objectives of accounting. According to Das (n.d.), the main objectives of Accounting are to keep a systematic record of all the financial transactions. There is a need to arrange the records in a systematic order so that it will be easy and quick to search for any record that is needed. It is also to protect the properties of the business. Accounting provides information to the manager or proprietor on the unjustified or unwarranted use of their properties. Also accounting records are used to know if the company is profiting or losing. Financial statements are being prepared from the information gathered from the records of transactions. The profit and loss account states if the company is profiting (when revenue is more than expenditure). Aside from the knowledge of the profit or loss status of the business, the businessmen (and other external users, e.g., lenders, government agencies) will also know the financial standing of his business, if he owes to someone or from an organization, how much he owes (liabilities). In order to ascertain the financial position of the business a balance sheet or position statement is prepared to show this information. In order to assist in facilitating decision making, accounting reports are almost always
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This note was uploaded on 05/04/2011 for the course ACCT 205 taught by Professor Shanakoh during the Summer '10 term at AIU Online.

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Unit 1 - Individual Project 1 - Accounting Principles...

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