Question

What was the intention of imp 3 spoiling Ivan milks?
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Answer 1

Every economic entity must present its financial information to all its stakeholders.  The information provided in the financials must be accurate and present a true picture of the entity. For this presentation, it must account for all its transactions. Since economic entities are compared to understand their financial statuses, there has to be uniformity in accounting. To bring about uniformity and to account for the transactions correctly there are three Golden Rules of Accounting.

These rules form the very basis of passing journal entries which in turn form the basis of accounting and bookkeeping.