.png)
Accounting is a systematic method (it follows rules) of recording the economic transactions of a
business so that the information can be used by both insiders (owners and managers) and
outsiders (investors, suppliers and creditors) to make financial decisions.
Business information is generally summarized in two statements, the Balance Sheet and the
Income Statement. The Balance Sheet summarizes the financial position or company’s wealth at a
given point in time, providing a static picture. The Income Statement shows the changes in net
worth (over a given period) that result from conducting the business or how much the business
has earned, thus providing a dynamic picture.
Download: