Accounting

The language of financial decisions

Are charged with the responsibility of guiding the socio-economic system of a country

• Business Managers

• Individuals

• Investors and Creditors

• Government and Regulatory Agencies

Defined as “Anything of use in the future operations”

• Equity

• Assets

• Capital

• Liability

A monetary value of the products or services sold to the customers

• Expense

• Owner

• Sundry Debtors

• Revenue

A person from whom amounts are due for goods sold or services rendered or in respect of a contractual obligation.

• Sundry Debtors

• Sundry Creditors

• Drawing

• Expense

It summarizes the results of the firm's operations over a period of time.

• Income statement

• Balance sheet

• Statement of cash flow

Includes divestiture and acquisition of real assets (capital expenditures) and disposal and purchase of financial assets. Also includes acquisitions of other firms.

• Cash flows from investing

• Cash flows from operations

• Cash flows from financing

It describes the assets, liabilities, and equity of the firm at a specific point in time.

• Balance Sheet

• Assets

• Liabilities

• Statement

The excess of assets over liabilities of the enterprise. It is the difference between the total assets & the total liabilities of the enterprise.

• Drawing

• Capital

• Liability

• Assets

It outlines the sources of the firm's cash inflows and shows where the cash outflows went.

• Statement of Cash Flows

• Balance Sheet

• Accounting

• Income Statement