Accounting for Financial Management
Accounting is known as the language of business , but it can also be OUR personal financial language. Accounting is the main tool in systematically recognizing and recording of businessess financial transactions. It is hugely used in order for the businesses to see the company's financial performance through it's profit and loss, and also the company's financial positions. In otherwords, accounting is use to maintain an entity's records to assist the company's performance and growth, as well as to decide how to manage company's resources and obligations. Accounting follow a simple formula, which shows the relationships of asset to liabilities and equity/residual income: Assets (A) - Liabilities (L) = Equity (E) Assets are OWNED resources; such as cash, bank savings, investments and properties. Liabilities are OBLIGATIONS; such as loans, taxes, fees, subsciptions and others. Equity is describe as