Fundamental Principles of Accounting and Financial Reporting
- Country :
India
Task 1
Accounting is the collecting and presentation of financial data on a company's financial performance, financial situation, and cash flow. This data is then used to make choices about business operations, investments in the firm, and loans to the business. Accounting records are used for collecting data. Accounting records are made up of accounting transactions that are documented either through basic business transactions (such as customer invoices and supplier invoices) or more specialized transactions (such as journal entries). When financial information is consolidated into accounting records, it is usually consolidated into financial statements, which include the following:
- Statement of income
- Balance sheet
- Statement of cash flows
- Statement of retained earnings
- Disclosures Accompanying the Financial Statements
Accounting principles are regulations that govern the preparation of financial statements. GAAP and IFRS are the most well-known principles. Depending on the framework you employ, the results displayed in your financial statements may change somewhat. The framework utilized by a corporation will be determined by the recipient of its financial statements.
Additional reports can be created by the accountant for specific purposes, such as determining how much money the company made from selling a product or how much money the company made from sales in a certain location. These are frequently referred to as management reports rather than financial reports submitted to other parties. Accounting's purpose is to create and then report financial facts.
Are you struggling to keep up with the demands of your academic journey? Don't worry, we've got your back! Exam Question Bank is your trusted partner in achieving academic excellence for all kind of technical and non-technical subjects.
Our comprehensive range of academic services is designed to cater to students at every level. Whether you're a high school student, a college undergraduate, or pursuing advanced studies, we have the expertise and resources to support you.
To connect with expert and ask your query click here Exam Question Bank
