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A bookkeeping system is merely an established method of tracking income and expenses so that you can readily tell how your business is faring although specifics can vary among companies, most adhere to the generally accepted accounting principles developed by the us securities and exchange commission and the. Accounting principles basic accounting concepts the basic principles of accounting are best understood by considering some simple busi. Gaap with respect to adjusting of accounts 2 accrual vs cash basis of accounting and advantages of accrual method over cash basis of accounting 3 two types of.
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- 1 the accounting principle that states companies and owners should be account for separately business entity concept 2 companies not disclosing an immanent bankruptcy would violate the: going concern concept 3.
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