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The balance sheet summarizes a company's financial status at a specific point in time, usually at the end of an accounting period. It presents a summary of a company's assets, liabilities, and…

The first step in the accounting cycle is to analyze and record transactions in the company's accounting records. This step involves identifying and documenting all financial transactions that occur during a specific…

The accounting cycle is a series of steps that businesses follow to record, analyze, and report their financial transactions accurately. While specific processes may vary depending on the organization's size, industry, and…

Preparing financial statements involves several steps to aggregate and analyze the financial data recorded in a company's accounting records. The primary financial statements include the Income Statement (Profit and Loss Statement), Balance…

Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions of a business or organization. It involves keeping track of all the money that flows in and out of the…

GAAP or Generally Accepted Accounting Principles. These are standardized principles used by companies to compile their financial statements. GAAP aims to ensure consistency, comparability, and transparency in financial reporting, allowing investors, creditors,…

In accounting, credit, and debit are terms used to indicate the effect of a transaction on different types of accounts. These terms are fundamental to the double-entry accounting system, where each transaction…

Golden rules in accounting are fundamental principles that guide the recording of financial transactions and the preparation of financial statements. These rules are the cornerstone of double-entry bookkeeping, a system where every…

Accounting rules, also known as accounting principles or generally accepted accounting principles (GAAP), are a set of standards, conventions, and procedures that govern the preparation and presentation of financial statements. These rules…