Why Is Accounting Important?
Accounting is the information system that:
Measures business activities
Processes the information into reports
Communicates the results to decision makers
What Is an Account?
The accounting equation contains three parts:
assets, liabilities, and equity. Each part
An account is the detailed record of all
increases and decreases that hav
How Are Current Liabilities of Known
Amounts Accounted For?
Liabilities are debts that are owed to
Liabilities have three main characteristics:
1. They occur as a result of a past transacti