Zamzam Abdelazim

Financial accounting - accounting is a fundamental aspect of business operations

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• Zamzam Abdelazim

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Accounting is a fundamental aspect of business operations because it records transactions through which businesses achieve and retain profitability. Recoding transactions is an important aspect of business because the primary goal of businesses is to maximise profitability (Tirole, 2010). Accounting lays the groundwork to manage the income, expenses, assets and cash flow of the firm, all of which are pivotal to the financial health of the business regardless of its size. This report discusses different accounting principles in practice. The first task utilises the double-entry method to record the transactions of the business in ledgers using the double-entry method. This task also includes the formulation of a trial balance using the balance off rule and illustrates to which final account each trial balance entry is attributable. The second task involves the creation of final accounts for different businesses. The legal implications of varying business structures differ, so their financial statements are different. This task also includes a discussion of the properties, purposes, and structures of different financial statements. The third task addresses bank reconciliation. Bank reconciliation resolves any discordance between the records of the business and its bank statement. The gist of the fourth task is the use of control accounts. Control accounts summarise ledger balances to ensure a match between those accounts and the accounts in the ledger of each account.

Article Subject Details

• Business management
• Human resource management
• Human resources

Article Keywords Details

• Accounting
• Budget
• Business
• Cost
• FInance
• Management
• Operation Management
• Project Management

Article File

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