The Building Blocks of Accounting : Ethics, Principles, and Assumptions

Abstract

The accounting system is one of the information systems among various types of information systems used by management in managing the financial statements of a company. Each system consists of the building blocks that make up the system. Understanding the basic building blocks in accounting will make it easier to understand accounting concepts correctly.

The basic terms that must be understood in accounting, namely: Income, Expenses, Assets, Liabilities, Owner's Equity, Debits, and Credits. To fulfill the basic building blocks in accounting, it is also necessary to pay attention to elements in accounting records such as ethics, principles and assumptions used in the accounting process. By paying attention to the elements in the accounting records, it is possible to provide financial statements in accordance with the standards used in reporting financial statement.