Financial Accounting Introduction and Foundations
- Topics:
- Financial Statements
- Tags:
- Accounting,
- Finance,
- Financial,
- Financial Accounting,
- Financial Information,
- Financial Services,
- GAAP,
- Operational Accounting,
- University Of Winnipeg
- Source:
- University of Winnipeg
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Overview: The process of identifying, recording, and communicating the economic events of a business to interested users of the information is called Accounting. The main purpose of Accounting is to provide decision-makers with financial information that is useful in their decision making process. These decision-makers may be: a). Internal – company managers and officers b). External – investors, creditors, taxing authorities, and regulatory agencies. Accounting is the process of recording, summarizing and reporting financial information related to the economic activities of a firm or organization. There needs to be clear guidelines and rules that everyone understands, in order that the process means the same thing to both preparers and users. In accounting these guidelines and rules are referred to as generally accepted accounting principles or GAAP. Accounting uses the transaction approach as the basis for gathering and recording financial information. Each economic event of the firm is a transaction and each transaction must be recorded. The summarization of the transactions ultimately results in the firm’s financial statements. This article mainly focuses upon the Fundamentals of accounting. To know more read the article.
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Format: PDF | Size: 43KB | Date: Jan 2003 | Pages: 8
