Importance of Financial Accounting in the Business کاروباری کھاتے جدید تقاضوں کے مطابق

financial accounting in business

financial accounting in business

Importance of Financial Accounting in the Business کاروباری کھاتے جدید تقاضوں کے مطابق

Importance of Accountancy in the Business

Types of Business Concerns:

1. Sole Proprietorship

2. Partnership

3. Limited Liability Company

Further, the Business Might be Either: – a trading concern – a manufacturing concern – a service concern – or a mix of

Financial Transaction: Any economic activity where the finance/money is involved.

Financial Accounting: The step-by-step procedure to record, summarize and analyze the financial transactions Financial Accounting: The Historical Business Record by Nature

The basic Pillars of Financial Accounting: Debit and Credit

Accounting Period: Normally One Year, where Profit or Loss of the Business is Determined

Types of Transactions: There are 6 Basic Types of Financial Transactions 1. Assets 2. Liabilities 3. Owner’s Equity 4. Drawing 5.Income 6. Expenses

Why Accounting is Important for a Business Concern: To Prepare the Financial Statements that Give a Very Clear, Timely, Accurate and Summarized Business Picture to the Management, as well as the Stakeholders

Author

  • Freelance Accountant, Full Charge Bookkeeper, Financial Analyst, and Ex Banker with 15 Years of Professional Experience. Also a Blogger...

Related Post