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First Question: There are3 golden rules of Accounting:
First is the Personal Account. The rule of Accounting is debit the receiver, credit the giver.
Second is the Real Account (Permanent Account). The rule of Accounting is debit what comes in, credit what goes out.
Third is the Nominal Account. The rule of Accounting is debit all expenses and losses, credit all incomes and gains.
Second Question:
AICPA defines Accounting as an art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are in part at least, of a financial character, and interpreting the results thereof.
The main purpose of Accounting as per the definition above is to provide accurate information of the financial position of an entity and understanding the result of the information. Aside from the accuracy of the financial report, we need also consider the speed in preparing the financial reports. Therefore, with the aid of advanced technology the modern accounting is now widely used by most of business entities.
Other benefits we got from modern Accounting are Cost Efficient and Database back up.
