Accounting Concepts - An Overview

A knowledge of Accounting is important to anyone involved in the business world.

"Accounting is the Language of Business."

Therefore it is of interest to a wide number of decision makers.

• Business Owners and prospective owners
• Employees
• Accounts Payable (Creditors)
• Bankers
• Government Departments (particularly the Taxation Department)

all are interested in how a particular business is going.

Accounting and the Accounting reports are one means of communicating information to Decision makers.

Accounting is really about answering three questions by producing three Accounting Reports

Question	The Accounting Report
How much is the business worth?	The Balance Sheet
How much has the business made?	The Profit & Loss Statement
How much will the business make?	Budgets, particularly the Cash Flow Forecast

These key Accounting reports emerge as output from an Accounting System.

To understand how these financial reports are created we need to return to the business inputs, the concept of transactions and the rules required to manipulate transactions is the subject of this course.

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