Accounting and its functions

Accounting and its functions -...

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Accounting and its functions Reactive responds to something Whenever you are doing accounting u are doing it for an accounting entity Must be useful, relieable/ be able to trust it , and verifiable/ must have something  to prove it Two types of accounting Managerial accounting Internal use Financial accounting External use Has to be published  Financial statements 1. Statement of financial position What ever ending at the end is the information that you use at the beginning of  the next year A finical position is a point of time Balance sheet indicates that this company has the following assets and valuable 2. Statement of revenue, expense, and changes in retained earnings Tells what happens at the end of the year, like more expenses less revenues Not statement of a point of time it tells what happened during the year 3. Statement of cash flows Tells how much cash went in and how much went out
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