Accounting is a system for recording business transactions and providing summary financial statements about a company's financial position and performance. It involves analyzing transactions, recording them in journals and ledgers, preparing trial balances, making adjustments, and issuing closing entries to produce financial statements that classify assets, liabilities, equity, revenues, and expenses. The financial statements and auditor's report provide information to users and express an opinion on whether the statements follow accounting principles.
1 of 11
Download to read offline
More Related Content
Presentation AMAN
2. Accounting is a system for recording
information about business
transactions to provide summary
statements of a company's financial
position and performance to users
who require such information.
6. Assets
Resources owned by a business that are
expected to provide future economic
benefits
Liabilities
Claims on assets by creditors (non-
owners) that represent an obligation to make
future payment of cash, goods, or services
Stockholders Equity (Owners equity)
Claims on assets by owners of business
Contributed Capital
Retained Earnings
7. Revenues
Increases in owners equity from
providing goods or services
Expenses
Decreases in owners equity incurred
in the process of generating revenues
Net Income (or Earnings or Net Profit)
= Revenues Expenses
9. Indicate responsibilities
Management responsible for financial
statements,
Auditor responsible to express an opinion
Scope
Auditor Followed GAAP
opinion
Financial Statement in Accordance with
GAAP.
