In other words accounting concepts some normal rules which can be changed but which has come in to existence with so many hard work of accountants in past. As mentioned above, these principles are the globally standardized guidelines for performing financial accounting activities that conform to the double entry system of accounting. However, this is not a stringent framework and different countries have various modified versions that are suited to their accounting conventions. Given below is a simplified elaboration of each of these principles as they are followed as a standard set of regulatory procedures. At Sydney we give you an accounting education, not simply training in accounting.
Principle of Permanence: This is an extension of the principle of consistency and it states that in order to compare the financial statements of different accounting periods to interpret and comprehend financial trends, it is necessary that the accounts are maintained in a consistent way. Principle of Continuity: This principle follows along the lines of the going concern concept of accounting and according to it, all financial statements should be drafted assuming the perpetual existence and uninterrupted functioning of the business entity. It states that all accounting transactions must be recorded for a given accounting period.
Principle of Periodicity: This principle is completely based upon the accounting period concept and the accrual concept. For instance, any prepayment or pre-receipts for subsequent accounting periods must be allocated accordingly to those accounting periods rather than recording the entire amount as the expense or revenue for the current accounting period. Many current book keepers and accounting clerks know enough to do the work of an accountant, but do not hold the required certification. For these people, and others with time commitment constraints, an online degree opens doors not otherwise available.
A big difference with online accounting degrees (and other majors) is that you take one class at a time. Let’s do the math: 120 required semester hours divided by 3 hours per class equals 40 classes needed to earn your accounting bachelor’s degree online. Whatever the cause, many students come to a point where they realize they took classes that simply do not progress them to their goal: a bachelor’s degree and an opportunity to interview for a meaningful, good-paying job. At Ashford, demonstrating knowledge and ability on an AP exam does earn credits toward a final degree.
In this way, you don’t need an extra semester or two (I’ve heard worse stories, 5 and a half year and six year degree tales of woe) to finish a bachelor’s degree. If one of your goals is to take the CPA exam, be very, very cautious before pursuing an online degree. After reading for several hours, it seems all signs (including vague disclaimers on the online degree sites themselves) indicate that you may not qualify to sit for the exam due to technical reasons, and that if you do sit for the exam, you are unlikely to pass. Their online accounting degree holders pass with higher rates than any other school (see link below).