Introduction to Accounting

Introduction to Accounting

Accounting helps businesses track and analyze their financial transactions, providing crucial information for decision-making. It ensures accurate financial reporting, enabling businesses to comply with legal and regulatory requirements. Additionally, accounting facilitates effective financial management and helps in assessing the profitability and sustainability of a business.

Financial Accounting Cycle

Source Documents

Financial Transactions

Journal Recording

Purchases, Sales, Payments, Transfer, Investment, returns

Invoice, Receipts, Cheques.

Recorded in Journals

Journal Recording

Trial Balance

Adjusted Trial Balance

Prepaid RevenuePrepaid Expense Accrued Revenue Accrued Expense Bad Debts Depreciation

Debit = Credit (?)

Posted ind ledger/sAssets, Liabilities, Revenue, Expenses

Balance Sheet

Income Statement

Financial Reports

Revenue Expenses Profit/Loss

AssetsLiabilities Equity