Translated from Indonesian to English - www.onlinedoctranslator.com
SUMMARY OF BASIC ACCOUNTING CONCEPTS
1. Understanding of accounting according to experts:
a. American Accounting Association (AAA): Accounting is the process of identifying, measuring and
reporting economic information to allow for clear and firm assessments and decisions for the users of
the information.
b. American Institute of Certified Public Accountants (AICPA): Accounting is the process of recording,
classifying and summarizing transactional events in the form of appropriate units of money and
interpreting the results of the process.
c. Niswonger, Fess and Warren: Accounting is the process of identifying, measuring and communicating
economic information to obtain appropriate considerations and decisions by users of the information
concerned.
2. The definition of accounting is reviewed from various aspects:
a.In terms of users, accounting provides the information needed to carry out activities efficiently and
evaluate the activities of an entity/company.
b. In terms of activity processes, accounting is the process of recording, classifying, summarizing,
reporting and analyzing financial data of an entity.
c. In terms of language, accounting comes from the verb "to account" which means to take into account.
Account is translated into Indonesian as an account.
d. In terms of procedures, accounting is a technique or art (art) of recording, classifying and concluding
and analyzing the results of these techniques in the form of transactions of a financial nature in the
value of the rupiah currency.
3. Accounting activities include recording, classifying, summarizing and reporting.
4. The main objective of accounting is to present accounting information from an entity to interested
parties. Accounting prepares an accurate financial report so that it can be utilized by policy makers and
other interested parties. The qualitative objectives of financial reports, among others: relevant,
understandable, can verifiable, neutral, timely, comparable and complete.
5.
SUMMARY OF BASIC ACCOUNTING CONCEPTS
1. Understanding of accounting according to experts:
a. American Accounting Association (AAA): Accounting is the process of identifying, measuring and
reporting economic information to allow for clear and firm assessments and decisions for the users of
the information.
b. American Institute of Certified Public Accountants (AICPA): Accounting is the process of recording,
classifying and summarizing transactional events in the form of appropriate units of money and
interpreting the results of the process.
c. Niswonger, Fess and Warren: Accounting is the process of identifying, measuring and communicating
economic information to obtain appropriate considerations and decisions by users of the information
concerned.
2. The definition of accounting is reviewed from various aspects:
a.In terms of users, accounting provides the information needed to carry out activities efficiently and
evaluate the activities of an entity/company.
b. In terms of activity processes, accounting is the process of recording, classifying, summarizing,
reporting and analyzing financial data of an entity.
c. In terms of language, accounting comes from the verb "to account" which means to take into account.
Account is translated into Indonesian as an account.
d. In terms of procedures, accounting is a technique or art (art) of recording, classifying and concluding
and analyzing the results of these techniques in the form of transactions of a financial nature in the
value of the rupiah currency.
3. Accounting activities include recording, classifying, summarizing and reporting.
4. The main objective of accounting is to present accounting information from an entity to interested
parties. Accounting prepares an accurate financial report so that it can be utilized by policy makers and
other interested parties. The qualitative objectives of financial reports, among others: relevant,
understandable, can verifiable, neutral, timely, comparable and complete.
5.
