Accounting 280

Knowing the numbers accounting is the fiscal information system that makes available these insights. Accounting has three basic activities such as records, communicates, and identifies that help the economic and business to track and maintain financial records. It is complex to describe the purpose of bookkeeping or accounting for the reason that the idea vary, depending on the business and individual using accounting principles. Accounting provides financial statements employ several steps that allow business to update assets, liabilities, and stockholder’s equity.

The most essential terms of accounting is to record procedures in order to provide a systematic chronological diary of events. Accounting is a fundamental element in communicating monetary events and to analyze and understand the reported fact. One of the main functions is to make available quantitative information for the most part financial, in relation to economic it is deliberated to be practical in making trade and industry decisions in creating logical alternatives along with preference paths.

Accounting has a set of standards called Generally Accepted Accounting Principles (GAAP), this specify how to report financial events. The Securities and Exchanges Commission (SEC) is an organization of the United States government that keeps an eye on the United States monetary marketplace and accounting standard rules. Foreign countries have adopted the accounting standards issued by the International Accounting Standards Board (IASB).

Companies prepared the four most important financial statements such as (1) Balance sheets; information contain the assets, liabilities, and stockholder’s equity of a corporation at a precise numbers. (2) An Income Statements; this represents the revenues and operating cost and consequential remaining profits or net loss of corporation for exact time. (3) A statement of cash flows; this go over the main point information concerning the cash...