Introduction to Accounting
Accounting is the process of planning, recording, analyzing, and interpreting financial information. The accounting process includes recording financial activities, but accounting is not the same as bookkeeping or recordkeeping. Bookkeeping is only the recording part of the accounting process. Accounting goes much further than just keeping records. Accounting involves analyzing and interpreting a business's operations to determine its financial well-being and plan its future.
The accounting cycle is the period when accounting procedures are completed: A
period in which a company completes all the procedures that ensure that
its accounting records are in order.
period in which a company completes all the procedures that ensure that
its accounting records are in order.
Types of business ownership include:
- Sole proprietorship which is one person owning the company and makes
all decisions themselves. - Partnership which includes two main
people running a company and sharing the decision making. - corporation is owned by many different people who must agree on
decisions for the company.