Accounting Basics
Introduction:
Accounting is the art of identifying, measuring, recording, and communicating economic information about an organization or other entity, in order to permit informed judgments by users of the information.
Accounting is a systematic process of identifying, measuring, classifying, summarizing and communicating financial information among various users of that information.
It includes profits and loses of the firm for the period, value and nature of business's assets, liabilities and owner's equity.
Accounting system of every organization provides three basic information:
Accounting Equation:
Assets = Liabilities + Equities.
Accounting is the art of identifying, measuring, recording, and communicating economic information about an organization or other entity, in order to permit informed judgments by users of the information.
Accounting is a systematic process of identifying, measuring, classifying, summarizing and communicating financial information among various users of that information.
It includes profits and loses of the firm for the period, value and nature of business's assets, liabilities and owner's equity.
Accounting system of every organization provides three basic information:
- All the possible resources available to that business (individual or group).
- The means employed to finance those resources.
- The results/ outcomes through their uses, ( Profits or losses)
Accounting Equation:
Assets = Liabilities + Equities.
