fundamentals of accounting
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This document outlines the basic accounting equation that assets must equal the sum of liabilities and equity, where assets are what the company owns, liabilities are what the company owes, and equity is the owner's claim on the company's assets.
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fundamentals of accounting
Editor's Notes
- Identifying business activities requires selecting transactions and events relevant to an organization. Ex. The sale of cosmetics, such as perfume, lipsticks.. by SaSa Recording business activities requires keeping a chronological log of transactions and events measured in dollars and classified and summarized in a useful format. Communicating business activities requires preparing accounting reports such as financial statements. It also requires analyzing and interpreting such reports. The difference between bookkeeping and accounting: bookkeeping is the recording of transactions and events. This is only one part of accounting. Accounting also identifies and communicates information on transactions and events.