BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Four basic assumptions of financial accounting. The four basic assumptions of financial accounting are (1) the economic entity assumption, (2) the fiscal period assumption, (3) the going concern assumption, and (4) the stable dollar assumption.

Detailed explanation-2: -In a practical sense, the main objective of financial accounting is to accurately prepare an organization’s financial accounts for a specific period, otherwise known as financial statements. The three primary financial statements are the income statement, the balance sheet and the statement of cash flows.

Detailed explanation-3: -The three primary documents associated with financial accounting are the income statement, balance sheet and statement of cash flows. The income statement reports a company’s revenues and expenses during a given period, usually one year.

Detailed explanation-4: -The purpose of financial accounting is to prepare a company’s financial statements to reflect a specific period of time. The three most common varieties of financial statements are the balance sheet, income statement, and statement of cash flow.