The Structure of Accounting Data

Abstract

The application of the concepts of value in Chapters 1 and 2 relied on the ability of the firm to collect data to provide evidence for increases or decreases in its value or net worth. The preparation of such financial statements as the balance sheet and profit and loss account in order to show this data in a coherent manner is an integral part of accounting. The accounting concepts on which these statements are prepared were introduced in Chapter 2, and are examined further in Chapter 5. Chapter 3 now examines some of the procedures for their preparation.