Question 1

What are the basic accounting terms?

Accepted Answer

Basic accounting terms are key concepts used to describe financial transactions, such as assets, liabilities, revenue, and expenses. Understanding these accounting terms helps in tracking and reporting financial data accurately.

Question 2

What are the 5 concepts in accounting?

Accepted Answer

The 5 basic accounting concepts include the Business Entity Concept, Money Measurement Concept, Going Concern Concept, Accounting Period Concept, and Cost Concept. These concepts form the foundation for recording financial transactions.

Question 3

What are the core principles of accounting?

Accepted Answer

The 5 basic principles of accounting are the Revenue Recognition Principle, Cost Principle, Matching Principle, Full Disclosure Principle, and Objectivity Principle. These principles guide accurate and ethical financial reporting.

Question 4

What are the basic rules of accounting?

Accepted Answer

The three Golden Rules of accounting are: 1) Debit what comes in, credit what goes out. 2) Credit the giver, debit the receiver. 3) Credit all income and debit all expenses. These rules help keep financial records balanced.

Question 5

Why is it important to learn accounting terms and concepts?

Accepted Answer

Understanding accounting terms and concepts is vital for accurate financial reporting and effective decision-making. Familiarity with important accounting terms ensures proper financial management and legal compliance. To deepen your knowledge of accounting terms and important concepts in finance, tax, and accounting, you can explore the PW Skills CPFTA Online Course.

basic accounting terms and concepts

A Beginner’s Guide to Basic Accounting Terms