Basic Accounting
Concepts
, Accounting
It is a science
◦ Every transaction can be analysed
◦ A continuous process
◦ Once the cycle is done it starts again
Financial accounting
◦ External users interested in the information
◦ 3 primary statements
◦ Income statement
◦ Balance sheet
◦ Cash-flow statement
Management accounting
◦ Internal use with reporting on specific activities
◦ Manage day-to-day information
, Income statement
Report on the financial performance of an enterprise
◦ Statement of profit or loss over a specific period of time
Concepts
, Accounting
It is a science
◦ Every transaction can be analysed
◦ A continuous process
◦ Once the cycle is done it starts again
Financial accounting
◦ External users interested in the information
◦ 3 primary statements
◦ Income statement
◦ Balance sheet
◦ Cash-flow statement
Management accounting
◦ Internal use with reporting on specific activities
◦ Manage day-to-day information
, Income statement
Report on the financial performance of an enterprise
◦ Statement of profit or loss over a specific period of time
