The purpose of accounting is to accumulate and report on financial information about the performance, financial position, and cash flows of a business. This information is then used to reach decisions about how to manage the business, or invest...
A system of record (SOR) or source system of record (SSoR) is a data management term for an information storage system (commonly implemented on a computer systemrunning a database management system) that is the authoritative data source for a...
Accounting records are key sources of information and evidence used to prepare, verify and/or audit the financial statements. They also include documentation to prove asset ownership for creation of liabilities and proof of monetary and non...
An accounting procedure is a standardized process that is used to perform a function within the accounting department. Examples of accounting procedures are: Issue billings to customers Pay invoices from suppliers Calculate payroll for employees...
Another basic accounting principle, the full disclosure principle, requires that a company'sfinancial statements include disclosure notes. These notes include information that helps readers of thefinancial statements make investment and credit...
Accounts are the financial records of a firm’s transactions.Final Accounts are prepared at the end of the financial year and give details of the profit or loss made as well as the worth of the business.
Profit
Profit = Sales Revenue – Total...
The data contained in the financial statements are used to make some useful observations about the performance and financial strength of the business. This is the analysis of accounts of a business. To do so, ratio analysis is employed.
Ratio...
According to this concept, the same accounting method should be applied in each accounting period when preparing financial reports. This makes it easy to compare results of one period with another period and the stakeholders can get a more...
