Accounting Theory and Standards

Accounting process begins with events, transactions, rough book, journals, ledger writing, trial balance preparation, and finalization of accounts and ends at balance sheet preparation. Such an aggregate process is known as an accounting cycle. The accounting cycle, thus, begins with events and ends with balance sheet every year, an entity follows the same process in order to disclose a summarized procedure of accounts it involved; and they are public documents, once financial accounts are prepared, audited and published. Since accounting system is a universal one, standardized and uniform accounting and financial statements ought to be prepared, presented, preserved, and published. Those would be public documents in the eyes of law. Since they are public documents, before publishing, a diligent care and caution has to be taken by making a study of each and every concept, principle, notion, technique, etc. thoroughly.