Accounting

Accounting

Certainly, here's a more concise version of the accounting information suitable for website content: Introduction to Accounting Accounting is the language of business finance, enabling organizations to record, analyze, and report financial transactions. It offers insights into an entity's financial health and performance. Key Principles of Accounting Accrual vs. Cash Basis: Accounting can follow an accrual (record when earned/incurred) or cash (record when cash changes hands) basis. Double-Entry Accounting: Transactions affect at least two accounts, ensuring financial balance. Consistency: Maintain consistent accounting practices for meaningful comparisons. Materiality: Focus on significant transactions to avoid information overload..

Financial Statements Balance Sheet: Displays assets, liabilities, and equity at a specific moment. Income Statement: Summarizes revenue, expenses, and net income for a period. Cash Flow Statement: Tracks cash movement in operating, investing, and financing activities. Statement of Retained Earnings: Shows changes in retained earnings over time.