The Final Accounts

In a practical sense, the main purpose of financial accounting is to accurately prepare the final accounts, also known as financial statements. The three main financial accounts are the income statement, the balance sheet and the statement of cash flows.Companies initially began to provide such accounts to provide important information to their shareholders and creditors of loans. Without reliable information, it is much riskier to give capital to a business. In turn, lenders and shareholders compare final accounts ....etc

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What is a general ledger account?

A general ledger account is an account or record used to sort and store balance sheet and income statement transactions. Examples of general ledger accounts include the asset accounts such as Cash, Accounts Receivable, Inventory, Investments, Land, and Equipment. Examples of the general ledger liability accounts include Notes Payable, Accounts Payable, Accrued Expenses Payable, and Customer Deposits. Examples of income statement accounts found in the general ledger include Sales, Service Fee Revenues, Salari ....etc

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Finance for non finance-I


How the Balance Sheet Works
The balance sheet is divided into two parts that, based on the following equation, must equal each other, or balance each other out. The main formula behind balance sheets is:

Assets = Liabilities + Shareholders' Equity
Assets, liabilities and owner s equity
Assets are what a company uses to operate its business,
liabilities and equity are two sources that support these assets.
Owners' equity, referred to as shareholders' equity i ....etc

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Accounting is as old as money itself . Since in early ages
commercial activities were based on barter system, record keeping
was not a necessity. The Industrial Revolution of 19th century along
with rapid rise in population, paved way for the development of
commercial activities, mass production and credit terms. Thus
recording of business transaction has become an important feature. In
recent years with the change of technologies and marketing along
with stiff competition, accounting system has undergone remarkable
changes.
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MBA (finance)
[email protected]
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