Tag: Basics of Accounting

  • Numbers Don’t Lie: How Accounting Keeps Businesses on Track

    In the article defining accounting, we saw that the definitions list certain characteristics or attributes of accounting. In this article, let’s discuss each attribute in detail. 1. Identification and Measurement of Financial Transactions and Events Accounting: If It’s Not About Money, It’s Not in the Books! Accounting only tracks transactions and events that have a…

  • Financial Accounting – The Language of Business

    Introduction to Financial Accounting You may have heard about audited financial statements, profit and loss accounts, balance sheets, etc. Financial accounting is the foundation for these documents. Accounting is a structured process of identifying, recording, classifying, summarising, analyzing, and interpreting financial transactions, then communicating the results to relevant stakeholders. These stakeholders include business owners, creditors,…