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Wgu Accounting Task 1

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Wgu Accounting Task 1
Task 1
Accounting record is defined as the all of the documentations involved in the preparation of financial statements and records which are relevant to financial review and audits which include recording of assets and liabilities, ledgers, journals, and any other supporting documents like invoices.
Ledger: Maintaining ledger is a must in all accounting system. Ledger is used for preparing trial balance which checks the arithmetical accuracy of the accounting books. Ledger is the store-house of all kind of information which is used for preparing final accounts and financial statements.
Prime entry books: is prime entry books which are also known as books of original entry are books where transactions are first recorded. The main books of prime entry consists of sales day book, purchase day book, sales return day book, purchase return day book, general journal and cash book.
Accounting plays important and useful role by developing the
…show more content…
 Increased volume of business results in large number of transactions and no businessman can remember everything.
Task 2
Accounting Concepts and Principles are a set of broad conventions that have been devised to provide a basic framework for financial reporting. As financial reporting involves significant professional judgments by accountants, these concepts and principles ensure that the users of financial information are not mislead by the adoption of accounting policies and practices that go against the spirit of the accountancy profession. Accountants must therefore actively consider whether the accounting treatments adopted are consistent with the accounting concepts and principles.
In order to ensure application of the accounting concepts and principles, major accounting standard-setting bodies have incorporated them into their reporting frameworks such as the IASB

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