Accounting

What do we need accounting for?

1. understanding the language of business: It allows us to communicate effectively with stakeholders, understand the financial health of an organizaion and make informed decisions

2. making informed decisions: deciding where to allocate resources, evaluating the profitability of a new project or assessing the risks of an international venture

3. navigating the global business environment: accounting gives framework to understand and navigate these complexities (taxes, regulations)

4. enhancing your strategic and analytical skills: teaches how to analyze data, spot trends and identify potential problems before they become crises

5. building trust and accountability: accounting helps build trust by ensuring transparency and accuracy in financial reporting and professional standards

6. enhancing carreer opportunities: accounting can open doors to various carreer paths

how many accounts does a transaction affect? at least two acccounts

income statement

tracks the company’s revenues and expenses over a specific period

balance sheet

summarizes the company’s assets, liabilities and equity at a specific point in time

cash flow statement

shows the inflows and outflows of cash, categorized into operating, investing and financing activities