Unit 13: Accounting and financial statements

Cost accounting

calculating all the expenses involved in producing something, including materials, labour, and all other expenses

Auditing

inspecting and reporting on accounts and financial records

Accounting

 preparing financial statements showing income and expenditure, assets and liabilities

Managerial or management accounting

providing information that will allow a business to make decisions, plan future operations and develop business strategies

Bookkeeping

• writing down the details of transactions (debits and credits)

cash flow statement

a statement giving details of money coming into and leaving the business, divided into day-to-day operations, investing and financing

Income statement

(or Statement of income, Profit and loss statement, or Profit and loss account) - a statement showing the difference between the revenues and expenses of a period

Balance sheet

(or Statement of financial position) - a statement showing the value of a business's assets, its liabilities, and its capital or shareholders' equity (money the business has that belongs to its owners)

Creative accounting

using all available accounting procedures and tricks to disguise the true financial position of a company.