Question

Briefly explain the concepts which form the back- bone of accounting. ​

Answer 1

Answer:

i hope you like the answer

Explanation:

the Backbone of Your Accounting System. Bookkeepers use “accounts” to keep track of assets, liabilities, income and expenses. Financial transactions are recorded against these accounts and then the accounts are grouped together to create financial statements.

Answer 2

The backbone of accounting is the accounting principles and the three main golden rules.

Is it important to know the back-bone accounting?

• Yes, it is important to know the backbone accounting, because only if a person know the accounting principles and the three golden rules he/she will be able to create a financial statement which is more important to run a business successfully.
• Customers are the main backbone of a business and they help in business development. A business man creates his yearly financial statement only if he is familiar with the accounting principles, its concepts and the golden rules.
• This will help him to know the profit and loss of his business which will help him to form his future business strategies.