Introduction to Accounting Basics:- Candidates who are interested in learning the Accounting Basics. We should be familiar with the Some of the Accounting Principles, Accounting Concepts, Credit, Debit, Income Statements, Balance Sheet, Final Accounts, Journal, Ledger, ..etc. Students need to aware of the Accounting Terminology like Assets, Liabilities, Income, Expenses, …etc.
Students can learn about the Accounting basics through the one Simple Story about the Business. Mohan is one person who started the business and running in a successful manner. But he cannot aware of the Profits and Loss in the True way. Here we require the recording of the transactions in books of accounts. To aware of whatever the purchases, Sales, Credit Sales, Credit Purchases are made to run the business. At the end of our business period time, you can come to know whether they are running the business profitable or not.
Basic Accounting Concepts PDF
Many people explain that we are putting great effort to run the business. But are not getting any profits at all. According to us running the business cannot make profits but analyzing the business will make the profits and gives the results. Every person who may be starting the business must and should analyze the business overview and make the appropriate profits.
Why should we write the accounts? this is the basic question most people are arises. In order to check whether our firm is running a profit or loss. Apart from the above reasons there are many explains like we cannot remember each and every transaction, work as a proof to customers, useful for taxation purpose, ..etc.
Introduction to Accounting Course (Introduction to Accounting Basics)
An accountant or Businessman can analyze the profits of the business through the following statements they are
- Income Statements
- Balance Sheet
- Statement of Cash Flows.
Income Statements:- This will show the Income, Expenses, Profit, and Losses. How to finalize these accounts can be made through the Income statements of Accounts.
Balance Sheet:- Balance sheet shows the Assets and liabilities of a particular Firm. Each and every firm can aware of the finalization of the transaction through ascertaining the financial position of the business.
Statement of Cash Flows:- Inflow and Outflow of the Cash are analyzed through the statement of the Final Accounts.