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Accounting Environment

By the term Accounting Environment we refer to the actual books of accounts and the tools that are used to keep these books. The physical accounting books that recorded the ledgers have been replaced by computers which record, store and help maneuver the large volumes. The tools refer to the accounting software and the spreadsheet applications which are used in retrieval, analysis and reporting.

The accounting software records the transactions, posts them to ledgers and prepares the trial balance. The spreadsheets help in preparing various operational reports based on the basic accounting data comprising different ledgers.

A student who wishes to pursue a career in Accountancy needs to gain a working understanding of the environment.

Accounting Principles

Accounting concepts are ideas that govern the writing of books of accounts.

Accounting conventions are the sound practices followed by accountants while writing books of accounts.

Together, the accounting concepts and accounting conventions are termed as the Generally Accepted Accounting Principles, or the Accounting Principles.