Accounting

Accounting is the production of financial resources on an organisation.  3 Underlying purposes for accounting are:

1. Organise set of statements which facilitate monitoring of performance, analysis and decision making

2. To compare the financial health of the company to another company (has to be comparable in industry, size and nature of business)

3. Organisaitons abide by the sets of regulations set by the Accounting Standards Body of the Country

 

The said statements above are usually the following 3:

1. Income Statement (shows the financial performance of the company)

2. Balance Sheet (shows the financial position of the company)

3. Cash Flow Statement (shows the cash position of the company)

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