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Introduction to
Fundamental Analysis
- The Accounting Process
-Postulates and Principles of
Accounting
* Postulates of Accounting
* Principles of Accounting
- The Financial Statements
* The Balance Sheet
* The Income Statement
* The Cash Flow Statement
* Shareholders' Equity
Statement
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Postulates and Principles of Accounting
Let me be clear as to why the postulates and
principles of accounting are addressed in a stock and money website. It’s
because investors can no longer take a passive role with their investments.
Investors need to understand the finances of the companies in which they own
stock. To accomplish this, they first need to understand the Rule Book.
The postulates and principles are the rules. Over the
past few decades, the various regulatory bodies have adopted a cookbook
approach towards accounting. There are literally hundreds of pronouncements
that need to be followed, and many are so large that they are published
individually in paperback books. In the current climate, there are only
going to be more regulators, legislation, rules and fines; not less. The
government upped the ante and is holding management’s feet to the fire for
errors and irregularities, devastating stock prices in the process. The one
bright spot to this situation is that most of the accounting rules are based
on a few simple principles. Investors at any level can understand the more
complex transactions, if they understand the basic premises, postulates and
principles used to create the financial statements.
Click here: for a
detailed description of The Postulates of Accounting
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