GENERAL KNOWLEDGE

Detailed explanation-1: -The results of all financial transactions that occur during an accounting period are summarized in the balance sheet, income statement, and cash flow statement. The financial statements of most companies are audited annually by an external CPA firm.

Detailed explanation-2: -Financial accounting is referred to as the process of recording, classifying, summarizing, and analyzing the financial transactions of a business.

Detailed explanation-3: -A balance sheet reports a company’s financial position as of a specific date. The balance sheet reports the company’s assets, liabilities, and equity, and the financial statement rolls over from one period to the next. Financial accounting guidance dictates how a company records cash, values assets, and reports debt.

Detailed explanation-4: -What is accounting? the recording, classifying, summarizing, and interpreting of financial events and transactions that affect an organization. The methods we use to record and summarize accounting data into reports are called an accounting system.

Detailed explanation-5: -Accounting is a process of recording, classifying, summarising, analysing and interpreting the financial transactions and communicating the result thereof to the users of such information.