the frist introduction to accounting bookkeeping

the frist introduction to accounting bookkeeping

and the archive for our topics ( step by step )

Financial accounting involves identifying - measuring - recording - and communicating in dollar terms the economic events and status of an organization.
This information is summarized and presented in financial statements... the three most important being the income statement - the balance sheet - and the statement of cash flows. Because these statements communicate financial information about an organization, organizations must understand the basics of financial accounting because financial statements are the best way to summarize a business’s financial status and performance.
Our coverage of financial accounting extends over several Topics.
This topic begins with an introduction to basic financial accounting concepts and then explains how organizations report financial performance - specifically revenues, costs, and profits. In other topics, the discussion is extended to the reporting of financial status, which includes assets - liabilities - and equity.

In addition, the reporting of cash flows. another topics, discusses financial statements - financial statement analysis can be better understood after learning more about the financial workings of a business.
Bookkeeping blog will provide you with a basic understanding of how financial statements are created and used to make judgments regarding the financial condition of an organization.

Historical Foundations of Financial Accounting

The Users of Financial Accounting Information

Regulation and Standards in Financial Accounting
Financial Accounting Standards Board (FASB)
Generally accepted accounting principles (GAAP)
American Institute of Certified Public Accountants (AICPA)


Basic Concepts of Financial Accounting
The preparation and presentation of financial accounting data is based ona set of principles, the most important of which are:
(1) accounting entity,(2) going concern, (3) accounting period,
(4) objectivity, (5) reliability,(6) monetary unit,
(7) relevance, (8) full disclosure, (9) materiality,
(10) conservatism, (11) consistency, and (12) comparability.


The financial Accounting flowchart
This topic describes  the  financial accounting process.  It shows how  information about transactions and events is accumulated to produce the balance sheet and the income statement. This early presentation is quite basic; subsequent chapters will present more complex issues. the cash flow effects of various transactions are addressed in another topic, the statement of cash flows is actually covered in detail in other topic, “Statement of Cash Flows.”

accounting equation


Recording and Compiling Accounting Data
explain the following terms used in the recording and compiling of accounting data:
• Transaction
• Account
• Posting
• Chart of accounts
• General ledger
• T account
• Double entry system