Beginners Guide to Solve an Accounting Question: 6 Golden Accounting Concepts!

Beginners Guide to Solve an Accounting Question: 6 Golden Accounting Concepts!
May 07, 2020
Author : Jess Healy

Over the years, several students have been drawn towards accounting due to its vast scope. However, they also face a lot of challenges while dealing with the accounting questions, which is why they turn to our accounting assignment help experts.

My Assignment Services is a trusted academic assistant that provides expert guidance in a variety of accounting concepts and principles to students worldwide. In this blog, we will be sharing a beginners guide to solve an accounting question to make it easier for you. But before moving ahead with the blog, let us give you a brief idea about the difference between the roles of a bookkeeper and an accountant.

difference between a bookkeeper and an accountant (1)

A lot of students who have approached us are the ones who have always been confused with the differences between these two functions. We hope now it is clear.

Now, our experts who provide accounting assignment help in Canada will give you a beginner comprehensive guide to solve an accounting question. With this, it will become a lot simpler to attempt the accounting assignments.

So, let us begin.

Accounting Basics Required In Every Accounting Question

Over the years, our accounting assignment writers have come across a variety of questions that students have sent us. Though all of them were different, certain concepts were always used to write the answers to those questions.

So, combining those, we have prepared this beginners guide to solving an accounting question for you. Look at these concepts and try to research them so that you can apply them easily in your assignments and make it exactly the one that your professors expect from you.

1. Revenues

Revenues in accounting refer to that income that an organisation has from the day-to-day business activities in the firm. Usually, revenue comes from the sale of goods and services to clients and customers. Some of the companies also gain their revenues in different forms such as interests, fees, or royalties. Also known as turnover or sales, revenue is an important concept in accounting.

Revenue directly impacts the balance sheet, which is another important concept of accounting. Let us know about it in detail now.

2. Balance sheet

A balance sheet in accounting is a financial statement that accounts for the assets, liabilities, and shareholders’ equity for an organisation. It reports about these statements for a fixed time and gives a foundation for calculating capital structure and rates of return.

balance sheet

There is an accounting equation that is adhered to while writing an accounting balance sheet.

Let us now discuss this accounting equation further.

3. Accounting equation

It is assets on one side and the summation of shareholders’ equity and the liabilities on the other side that are balanced out.

It is represented as

Assets= Liabilities+ Shareholder's Equity

This is the accounting equation that forms the basis of the double-entry accounting system. Any accounting student would have come across this equation while preparing their balance sheets.

The purpose of this equation is to maintain a “balance” between the entries on the debit side and their coverage on the credit side. Our accounting assignment help experts follow these 4-steps to balance the entries on the balance sheet:

  • Note the total assets of the company on the balance sheet
  • Calculate the liabilities and list them on the balance sheet
  • Calculate the equities of the shareholders and add these to the total liabilities.

4. Cash flow statement

Cash flow statement (CFS) is the total amount of cash and its equivalents that are coming into the company and leaving the company. It is the real measure of the capability of an organisation on managing and generating cash to pay all the debt obligations and other expenses that are incurred by the company.

The cash flow statement is an important accounting concept because it complements several other associated accounting concepts such as the balance sheet and the income statement for an organisation. Owing to the fact, this has been made a crucial part in the company’s financial report since 1987.

As per our accounting assignment help experts, there are four components of the cash flow statement (CFS), which are as follows:

  • The cash which is spent on the operating activities in an organisation.
  • The cash that is gained or spends on the investing activities for a firm
  • The money that the company gains or loses from the financial activities
  • Accounts of several non-cash activities

5. Accounting principles

To approach every accounting assignment, a student has to be aware of the basic accounting principles and guidelines. Ten main accounting principles govern all the other accounting concepts in these assignments.

These are:

  • Economic Entity Assumption
  • Monetary Unit Assumption
  • period Assumption
  • Cost Principle
  • Full Disclosure Principle
  • Going Concern Principle
  • Matching Principle
  • Revenue Recognition Principle
  • Materiality
  • Conservatism

Although, all of these principles are important from the assignments that are rolled out to students, however, two principles help students to be sure of the profit in the company’s income statement. These two principles are the revenue recognition principle and the matching principle.

In case you are unclear on any of these basic accounting principles, then it is the perfect time to get assisted by a panel of professional accounting assignment help experts in Canada who have an experience of more than ten years in providing high-quality reference assignment solutions to students around the world, covering these principles.

6.  General ledgers V/S Ledger Journals

As the name creates confusion, a lot of students have approached us with their doubts on this important accounting concept. This is something that is frequently used in accounting assignments.

Talking about tracking the business transactions in an organisation, as per our accounting assignment writers, a double-entry system that incorporates both of these accounting tools is considered to be the best one.

Let us know each of these briefly now.

General Journals

It is a book of first-hand accounting entries made by the accountants and bookkeepers to account for the business transactions as and when the events occur. Every page of the general journals has different columns of date, serial numbers, and credit-debit records.

General Ledgers

It is a book that consists of all the relevant accounts including the assets, liabilities, expenses, owners’ capital, and revenues. All the transactions that are mentioned in the general journals are mentioned in the generals' ledger accounts. Based on this, students calculate the balances and this is shifted to a trial balance.

With these 6 accounting concepts, even you can produce impeccable accounting assignments that will shine among others. Other than these, we have catered to several other concepts as well. So, if you have doubts regarding any of these or some other topic, then you can simply hand them over to us. Our accounting assignment help experts will get back to you with the answers shortly.

Strengthen Your Knowledge of Fundamental Accounting Concepts With the Guidance of Our Experts!

This blog was just an attempt to give you a basic idea about the knowledge that we possess regarding all these commonly used accounting concepts while writing accounting assignments. As we possess scholarly degrees in Accounting from some of the world’s most reputed institutions, our accounting assignment help experts have gained a thorough command over these and also possess years of industry experience.

Over the years, My Assignment Services has become a repository of comprehensive and relevant assignment solutions for students, in various subjects. It is a platform where professionalism meets excellence.

So, send us in all your assignment requirements and experience superior-quality academic assistance from proficient experts, right at your doorstep!

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About the Author

Jess Healy

Julia Martin has been a teacher, private academic expert and has held the position of an accounting manager at a firm in Melbourne. She joined My Assignment Services as an accounting assignment writing expert and have grown since then to become one of the best accounting assignment experts in the assignment help industry. She has worked with students of several universities and has even aided students from Singapore, the United Kingdom, etc. with her expert consultation. She writes blogs for students to help them understand the accounting assignments’ concepts, principles and theories.

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