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Accounting | Learn Accounting From Basics

Accounting (in English: Accounting) is a set of methods concerned with recording, auditing, analyzing and communicating financial transactions to management. With the aim of providing assistance in making decisions about tax-related issues, accounting also contributes to identifying the rates of losses and profits during a certain period of time, and the size of the assets and liabilities of establishments, and accounting is also defined as the activities that keep the financial records of individuals or establishments.

The Importance of Accounting

The special importance of accounting lies in its essential role in achieving the following:

Contribute to providing a clear analysis of all financial operations, and then recording them in legal accounting documents.


Since 2300 BC, various methods have been used in dealing with accounting books. Where the Samaritans used clay tablets to write data on them, as for the Romans, they used wood covered with wax, and in the ancient Egyptian civilization the use of papyrus spread, and in the Islamic civilization, the use of cloth, and the first foundations of accounting science belong to the mathematician Baccello, who contributed to the formulation of the theory of double entry in the year 1494 AD, and this theory was not used significantly until the year 1869 AD, and Baccello was interested in proposing and preparing three types of accounting books, namely the professor, the daily, and the draft that were used in preparing the accounting lists until this time.


Accountability is concerned with reaching necessary goals for the institution or company, the most important of which are:

Endeavor to prepare and write financial statements; Which contributes to the income account.

Determine the resources, obligations and rights of the business or project.


The establishment of accounting science was based on a set of basic principles, namely:

Continuity principle: It is the assumption that the business or project has an indefinite life. The continuity principle depends on preparing its own budget at the end of a certain period of time in order to clarify its financial position.

The historical cost principle: is the dependence of accountants in determining financial values ​​on past events more than on expected events in the future. Therefore, consideration must be given to the expenditures actually paid to purchase an asset, ignoring all considerations related to the scrap value, production value, market price or selling price, and only the price actually paid to acquire the asset is relied upon.

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