Naming an Appropriate Account Title for Propitiousness
Once things emerged in the world (such as humans, animals, places, or objects), humans always give them particular names. In the same way, accountants or bookkeepers define account titles or account names for each business transaction before journalizing them into the accounting system. The title should present or reflect data recorded under the specific account title. This is beneficial for the collection of data and preparing the summary for the presentation of financial reports or statements.
Therefore, accountants should provide propitious account title because clear, understandable and relevant data put into its relative account title contribute to the prosperity of business. It also prevents misunderstanding regarding different business financial information. Account titles are listed and presented in the financial report, while details concerning the account titles are presented through the notes to financial report. Titles of accounts in this article are emphasized only on financial accounting (excluding managerial accounting and cost accounting).
The Federation of Accounting Professions under the Royal Patronage of His Majesty the King. (2014). Conceptual Framework for Financial Reporting (Revise 2014), Retrieved 15 April, 2016 from http://www.fap.or.th.
The Federation of Accounting Professions under the Royal Patronage of His Majesty the King. (2015). Conceptual Framework for Financial Reporting (Revise 2015), Retrieved 15 April, 2016 from http://www.fap.or.th.