Accounting assignments are mostly practically based, requiring you to deal with a given case methodically. They require attention to minute details. Every accounting student would be familiar with the feeling of frustration caused by missing out on the smallest of points. What most students do not realise is that theories and concepts hold much importance in accounts. Students tend to make the mistake of treating the subject purely as practical. There are some basic concepts which apply throughout and therefore, need to be kept in mind while performing any kind of accounting operation. It is hence advised that you go through these concepts before you approach any kind of accounting assignment.
- Accounting concepts
To maintain uniformity and consistency in accounting records, the accounting concepts were developed. Students always take this as a theoretical part of the subject but they form the basis of accounting. You may get confused at many steps while dealing with accounts, so you should always think back to these concepts and check if it makes sense. The concepts include:
- Business entity concept
- Money measurement concept
- Going concern concept
- Accounting period concept
- Accounting cost concept
- Duality aspect concept
- Realisation concept
- Accrual concept
- Matching concept
- Accounting standards
An accounting standard is a policy that defines the treatment of an accounting transaction in a financial statement. Their main purpose is to provide guidance for companies to prepare and report financial statements in the most appropriate fashion. Generally Accepted Accounting Principles (GAAP) is a collection of commonly followed accounting rules and standards, although every region has its own.
- System of record-keeping
You need to understand the broad classification of accounts and their nature to start with any assignment. We often forget this as we advance with accounting, but they are necessary for clarity. Each account has its own unique nature and set of rules and therefore, is treated differently. Accounts fall into these 5 categories:
- Assets
- Liabilities
- Equity
- Revenue
- Expenses
- Transactions
Just like accounts, the different transactions also need to be considered. When we understand what category a particular transaction falls into, it becomes easier to treat them. Transactions can be classified into various categories based on different criteria like cash and non-cash transactions, internal or external transactions, business transactions, non-business transactions and personal transactions.
- Reporting statements
A student should have an understanding of the three types of reporting standards. It is where the data from all the accounts are aggregated. You need to understand the purpose of each statement to compile them and understand the items that are considered in it. There are 3 types of statements-
- Income statement
- Balance sheet
- Statement of cash flows
It is important to revise all these basic concepts before you approach an accounting assignment as it is very prone to mistakes. The mistakes often arise from the lack of clarity of either of these concepts. If you too struggle with accounting assignments and get easily frustrated when you miss out on details and ruin the whole assignment, you can simply take help with assignments from the experts of Assignment Prime, where you get help from experts in accounting for every kind of paper-related problem.