- The income statement presents the organization's profitability over a certain time period.
- The balance sheet gives the organization's financial position on a particular day: what it owns, what it owes, and the shareholders' investment in the business.
- The cash flow statement describes the sources and uses of the organization's cash during a specified period of time.
- Double-entry accounting is the system specified by GAAP. Every transaction has a debit side and a credit side, and the two must equal.
- The ledger is the heart of the accounting system. Financial statements are prepared from the ledger.
Unlearn
Nil.
Relearn
Accounting and it's principle is new to me.
Start to apply and understand "Revenue - Expense = Profit/Loss (which means profitability)" - can be obtained from company's Income Statement.
No comments:
Post a Comment