FINANCE

LEARN BUSINESS ACCOUNTING-THE LANGUAGE OF BUSINESS

LEARN BUSINESS ACCOUNTING THE LANGUAGE OF BUSINESS presents basic accounting principles in a clear and precise form. Some topics discussed in this book are as follows (a)financial analysis (b) Basic accounting concept (c)Preparation of financial statement- profit and loss and balance sheet (d) Trial balance (e)Budget and financial control

(e)Double entry

The main law in economics is the law of scarcity.

Resources are scarce but human wants are unlimited.

There must be a way to control resources within and out of the business.

ACCOUNTING RECORDS TO MAINTAIN

(a)Sales or Revenue-this track income into the business with dates

(b)Purchases-This track all purchases made in the business with dates.

(c)Inventory or stock records.

(d) Cost of production or services per period.

(e) Creditor or accounts payables. –keeps track of bill or creditors to pay.

(f) Debtors or Accounts Receivables –keeps records fund to receive from debtors.

(g) Fixed or non-current Assets employed in the business.

(h) Capital and fund employed in the business.

(i) Bank reconciliation statement and bank/cash balances

As business starts growing these records move from manual to more sophisticated computerized systems.

Financial control & authorization level.

Controls is more valuable than audit as prevention of ailment is more valuable than cure

Controls prevent adverse consequences. Therefore, it is necessary that controls are structured to prevent adverse result.

Financial statement analysis can make a big difference in management of your finances.

This will assist in ascertaining the following.

BOOK CONTENT

1PRINCIPLE OF ACCOUNTING

2.DOUBLE ENTRY AND TRIAL BALANCE

3.FINANCIAL STATEMENT-PROFIT AND LOSS ACCOUNT AND BALANCE SHEET

4.FINANCIAL ANALYSIS

5.PARTNERSHIP ACCOUNT

6.REVIEW QUESTION-PROFESSIONAL EXAM ADAPTED QUESTION

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