Accounting

Accounting deals with interpreting financial information and communicating the findings to management and other decision makers within the company. It is important that accountants are accurate and are able to present their information in a way that whoever is receiving it, will understand what is being said. Two major fields of accounting are management accounting and financial accounting.

There are 3 financial statements prepared by accountants:

  • The income statement-Summarizes a business’s revenues(sales), expenses(cost of doing business), and net income(profit)
  • The balance sheet -Reports on a company’s assets, liabilities, and owner’s equity;it is based on the accounting equation Assets= Liabilities+Owner’s equity
  • The statement of cash flows-Shows how much cash the business has coming in and going out

To learn more about accounting you can visit http://www.bls.gov/oco/ocos001.htm

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