MMPC 4

A. Business Entity Concept The Business Entity Concept, also known as the Entity Concept, is a fundamental accounting principle that states that a business is treated as a separate entity from its owners or shareholders. According to this concept: This concept ensures clarity in financial reporting by distinguishing between business transactions and personal transactions of… Read More »Explain Business Entity Concept, Accrual Concept, Dual Aspect Concept, Cash and Cash equivalents

Financial statements are formal records of the financial activities and position of a business, organization, or entity. They provide essential information for stakeholders to assess the financial performance and health of the entity. The main financial statements typically included in an annual report are: Parts of an Annual Report An annual report typically includes not… Read More »Explain the various Financial Statements. Which are parts of the Annual Report. How can Notes to the accounts help in better understanding of financial statements?

Human Resource Accounting (HRA) is a method of accounting that values human resources (employees) in an organization by quantifying their costs and contributions. The basic idea is to treat human resources as assets, similar to physical and financial assets, and to measure their value in monetary terms. Components of Human Resource Accounting Uses of Human… Read More »What is Human Resource Accounting? How it is used as management decision tool