Account Classification and Principle Codification.

Abstract The article focuses on account classification and principle codification. In one article, a professor proposed a dynamic equation to reflect the organization of accounting elements. To fully obtain the use of this equation dynamic teaching methods are called for. Traditional approaches to the introduction of accounting principles have centered upon the "Balance Sheet," or the "Journal." approach. A third and rather infrequently used approach to fundamental accounting principles is the chart of accounts approach. The balance sheet approach centers upon the fundamental or basic equation, which organizes elements of a business entity into three groups: assets, liabilities and proprietorship. Therefore, all accounts are classified as being a member of a class and accounting principles are proposed and codified to reflect changes, which take place within the class. The journal approach centers around the concept that the accounting for business transactions is cyclic in nature. Thus, the student of accounting is led through steps of the cycle.