the man of many words

The Accounting Entity

An Accounting Entity is an economic activity owned by one or more owners, Under this concept the business affair of the organization are kept serparte from the affair of the owners and other organizations. This means that when the owners of the business take cash or goods for their own use they must record it as Drawings. In the accounting records of the entity


Monetary Measurment

Money values are used in an accounting system to record all financial events affecting the entity. Everything is measured in dollar terms. Users of accounting information must understand that only thin...