List and Briefly Discuss Three Accounting Concepts and Principles That

question 122

Essay

List and briefly discuss three accounting concepts and principles that apply to accrual basis accounting.

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Definitions:

Winding Up

The process of dissolving a company, involving the cessation of business operations, selling of assets, and distribution of proceeds to creditors and shareholders.

Negative Capital

occurs when a company's total liabilities exceed its total assets, indicating financial distress.

Balance

The amount of money currently in an account or owing on a debt, or the practice of equating debits and credits in bookkeeping.

Recovered

The process of regaining possession or control of something lost or stolen, or the return to a normal state of health, mind, or strength.