Accounting
Accounting
Accrual Principle: Transactions are recorded when they occur, not when cash is
received or paid.
Going Concern Principle: Assumes that the business will continue operating in the
foreseeable future.
Matching Principle: Revenues and their related expenses should be recorded in the
same accounting period.
Types of Accounting
Financial Statements
Income Statement: Reports revenue, expenses, and profit over a specific period.
Balance Sheet: Displays the company’s assets, liabilities, and equity at a given
point in time.
Cash Flow Statement: Shows the inflow and outflow of cash within a business.
Accounting Cycle
Identifying transactions
Adjusting entries
Importance of Accounting
Conclusion