Accounting is the communication of Financial information to decision makers via the Accounting Reports.
In this course we have tried to show you how the day to day Financial Transactions of a business are processed into the Profit & Loss Statement and Balance Sheet.
That process involves
Analysing Transactions into their Debit and Credit components
Posting them to their to T Accounts
Balancing the T accounts
Preparation of the Trial Balance to check the process
Calculating the Cost of Goods Sold
Closing Down the Accounts to determine Profit
Preparation of the Profit and Loss Statement and Balance Sheet.
As I said in the beginning Accounting is the Language of Business
I hope you now have a better understanding of that language.
You can test yourself by attempting the Word Puzzle on the next page.
regards
Mike Capstick