Introduction to Accounting

Front

What is accounting?

Back

Accounting is a system for recording, summarizing, and analyzing financial transactions.

Front

What is the accounting equation?

Back

Assets = Liabilities + Owner’s Equity

Front

What is the double-entry accounting system?

Back

A system where every transaction affects at least two accounts, involving debits and credits.

Front

What are the key financial statements discussed?

Back

Income statement, balance sheet, and cash flow statement.

Front

Why is accurate documentation important in financial reporting?

Back

To ensure transparency and accountability.

Front

Finance

Back

• focuses on the acquisition, management, and utilization of funds.

Front

Capital budgeting

Back

deciding which projects to invest in),

Front

Capital structure

Back

(determining the best mix of debt and equity financing),

Front

Working capital management

Back

(managing short-term assets and liabilities to ensure liquidity).

Front

Sole proprietorship:

Back

Sole proprietorship: Single-owner business, easy to form, owner has unlimited liability,