What is Basic Accounting definition/concept

Basic or basic general accounting is the science that studies and analyzes the financial and economic transactions of companies in order to determine their notes and records in the accounting books following the principles and rules established by the regulation .

Furthermore, in a general sense, it is also possible to define accounting as a skill required to manage the record of a company’s operations in a systematic way.

When talking about accounting in relation to the business life of companies, they play a fundamental role in the daily lives of countries and, consequently, in the world economy. Many of the policy decisions are based on accounting reports that establish the thermometer of the economic situation of countries, playing a decisive factor in guiding their policy in the future.

The Objectives of Basic Accounting

From the cases mentioned above, it is possible to deduce a series of objectives that the accounting department of a company should have as a goal. In this way, its main objective is to have a clear and accurate record, in chronological order, of all the operations carried out, establishing total control over what are the resources and obligations of a company or business .

In addition, it must be able, at any time, to provide a clear picture of the company’s financial situation and to comply with current regulations.

Accounting principles are formed by a list of standards that every professional must carefully observe in order to apply accounting science carefully.

Thus, these principles help accountants to accurately interpret the economic movements that are used in the financial statements of any business.

There are a hundred generally acceptable principles, as shown by some entities, moving companies, competition , uniformity, objectivity, cost assessment, double shift, among others.

Among all of them, we can mention a basic principle oriented at all times as an accounting professional’s activity: equity . This can be defined as a concern to maintain accounting in an objective way without allowing the various interests that come into conflict within business life to influence this item.

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