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Accounting Principles

Accounting principles are the fundamental rules, concepts, and guidelines that govern the field of accounting, ensuring consistency, reliability, and comparability in financial reporting. They form the foundation for preparing financial statements, such as balance sheets and income statements, and include standards like GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards). These principles help organizations accurately record, classify, and summarize financial transactions to provide a true and fair view of their financial position.

Also known as: GAAP, IFRS, Financial Accounting Standards, Bookkeeping Rules, Accrual Basis
🧊Why learn Accounting Principles?

Developers should learn accounting principles when working on financial software, fintech applications, or enterprise systems that involve budgeting, invoicing, or compliance reporting, as it ensures their code aligns with legal and regulatory requirements. This knowledge is crucial for roles in banking, e-commerce, or any domain requiring accurate financial data processing, helping to prevent errors and support audit trails.

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