12/25/2023 0 Comments Accounting and finance definition![]() ![]() Therefore, a balance of credit and debit is attained.Īn Income Statement is a document of Revenues, Expenses, Profits and Losses that large businesses generate in a period of time. This gets entered as a credit in the account and also marked as the amount payable. For example, there is a receipt of a loan of $10000 dollars from a bank. The records of the transactions are done using the Double-entry method where an amount is entered twice as credit and debit. These are also known as Generally Accepted Accounting Principles (GAAP), formulated to provide ease, credibility and uniformity to the accounting processes across companies. There are a set of guidelines to be followed according to the Financial Accounting Standards Board (FASB), US. The role of a financial Accountant is crucial in such documentations.įinancial Accounting is the process of documenting, analyzing and reporting every transaction of a business or an organization, in order to assess the financial health and stability of the same. The status of the expenses, information management and reports need to be filed promptly to save confusions and efforts that might be uncalled for, later. ![]() This is precisely why accounting plays an inevitable role in maintaining the records and statistics, concerning the transactions of a company every year. This helps the organization to assess the overall economic condition, diagnose and resolve issues at once. It is a primary responsibility of a registered company to review the performances, progress and needs for improvement of the firm over a financial year. ![]()
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