![]() ![]() Terms like 'revenue,' 'expenses,' 'gross profit,' 'depreciation,' 'bad debt,' and 'fixed assets' have precise definitions when used in business accounting. It provides a more accurate financial picture, but is more difficult to administer. The main limitations of cash accounting are that: there is nowhere to show 'unpaid bills' there is no way of seeing any historical trend in the figures and no allowance is made for major purchases or asset acquisition.Īccrual accounting is considered to be the standard accounting practice for most organizations, and is mandated for organizations of any real size. The basic principles of accounting are best understood by considering some simple businesses and how they might document their financial activities. ![]() You may also be asked to contribute financial data about your own business unit.Ĭhapter 2 - Basic Accounting Concepts and Financial Statements This free eBook explains all of the basic accounting concepts and terminology you will need to understand the three primary financial statements that appear in every organization's annual report and most internal monthly reports.Ĭhapter 1 - Accounting Concepts and ConventionsĪs a manager, you will usually be expected to understand simple financial reports and communicate effectively with financial people in your own organization. Click the PDF icon below to download the eBook from the Online Library.īook Description - ISBN 978-1-62620-953-4 (32 Pages) ![]()
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