Assignment 2 Management Accounting Application
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Hnd Assignment Management Accounting
Ac co unt in g is th e la ng ua ge of bu si ne ss an d it is us ed to co mm un ic at e fi nan ci al inf orm ati on. In order for tha t inf orm ati on to make sen se, accoun tin g is based on 12 fun dam ent al con cep ts. The se fun dam ent al conc ept s the n for m the basis for all of the Gene ral ly Acc ept ed Acco unt ing Pri nci ple s (GA AP). By usi ng the se conc ept s as the foundation, readers of financial statements and other accounting information do not need to make assumptions about what the numbers mean. For instance, the difference between reading that a truck has a value of $9000 on the balan ce sheet and understan ding what that $9000 repre sents is huge. Can you turn around. An asset (something that is owned by the company) is entered into the accounting records at the price paid to acquire it.
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