Accounting is basically the back bone of a business.

It gives structured financial information to those within the business, so they can make important decisions about the business. For an individual to understand how to make these decisions, they need to understand four basic principles of accounting, which are the balance sheet, income statement, equity statement and cash flow statement. The balance sheet shows all assets, liabilities, and owners equity within the business. The income statement shows whether the business makes a profit or loss. The equity statement shows the owners interest within the company, and the Cash flow statement shows the yearly movement of cash within the business. These principles are recorded and keep track of a business activities. For example, if an owner makes a payment on a Van, it is recorded in the business books to show a van, which is an asset, is added to the business and the cash balance within the business would go down because the owner used the cash to buy the van. With the process of accounting a business will how to proceed, if for example they are not turning over a profit; they can try to cut back on expenses or even cut back on employee wages.

These principles a basically the back bone of a business. It gives structured financial information to those within the business, so they can make important decisions about the business. For an individual to understand how to make these decisions, they need to understand four basic principles of accounting, which are the balance sheet, income statement, equity re recorded and keep track of a business activities. For example, if an owner makes a payment on a Van, it is recorded in the business books to show a van, which is an asset, is added to the business and the cash balance within the business would go down because the owner used the cash to buy the van. With the process of accounting a business will how to proceed, if for example they are not turning over a profit; they can try to cut back on expenses or even cut back on employee wages. Accounting is basically the back bone of a business. It gives structured financial information to those within the business, so they can make important decisions about the business. For an individual to understand how to make these decisions, they need to understand four basic principles of accounting, which are the balance sheet, income statement, equity statement and cash flow statement. The balance These principles are recorded and keep track of a business activities. For example, if an owner makes a payment on a Van, it is recorded in the business books to show a van, which is an asset, is added to the business and the cash balance within the business is basically the back bone of a business. It gives structured financial information to those within the business, so they can make important decisions about the business. For an individual to understand how to make these decisions, they need to understand four basic principles of accounting, which are the balance sheet, income statement, equity how to make these decisions, they need to understand four basic principles of accounting, which are the balance sheet, income statement, equity statement and cash flow statement. The balance

These principles are recorded and keep track of a business activities. For example, if an owner makes a payment on a Van, it is recorded in the business books to show a van, which is an asset, is added to the business and the cash balance within the business