THE APPLICATION OF ACCOUNTING PRINCIPLES IN INSURANCE COMPANIES

CHAPTER ONE

1.0            INTRODUCTION

Accounting is very essential in every profit making

organization that has economic resource such as money, machinery and building, while it has bee called the language of business.  It has serves as a language to provides financial information about non profit oriental businesses organization such as churches, government, charities, hospital, club etc.

          In addition once role or objectives in life as a manager. Politician, investor, student he wile find the knowledge of accounting as one of his needs.

Many people have try to answer two importance questions about organization such lie:

Now will if it doing a given period and where does the organization stand one a given day. Nevertheless accounting ads in answering these question by showing where and when money has been spent and how committed it has been made by evaluating performance and indicating the financial implication fractions of choosing once plan verse another.

The accounting fractions are govern by money concepts and principles on accounting.

2.1            BACKGROUND OF STUDY

The background of the study implies on the rules that govern

how accountant measure process and communicate financial information fall under the heading “General Accepted Accounting Principles (GAAP).