Accounting is the process of documenting, classifying, and summarising financial transactions in order to produce data that may be used to make business decisions. Financial accounting is a specific branch of accounting that deals with the financial statements of businesses. These statements show how much money a company has made and spent, as well as its assets, liabilities, and owner’s equity.
What Are The Three Main Financial Statements?
The three main financial statements are the balance sheet, income statement, and cash flow statement. The balance sheet shows a company’s assets and liabilities at a specific point in time, while the income statement shows how much money a company has made and spent over a period of time. The cash flow statement shows how much cash a company has on hand and how it is being used.
What Are The Two Types Of Financial Accounting?
There are two types of financial accounting: public accounting and managerial accounting. Public accounting is the type of accounting that is done by certified public accountants (CPAs). Managerial accounting is the type of accounting that is done by managers within a company.
If you’re thinking of starting your own business, or if you’re already running one, it’s important to understand financial accounting. This knowledge will help you make good decisions about where to allocate your resources. It will also give you a better understanding of your business’s financial health. There are many resources available online if you’re not sure where to begin. You can also find accountants in London, Ontario that can help you keep track of your finances. Whatever route you decide to take, gaining a solid understanding of financial accounting is essential to the success of your business.