What Are Basic Financial Accounting Concepts?
Financial accounting preserves business operations in ledgers as financial transactions. A series of these transactions shows business owners, company owners, and investors how a company is doing financially. Financial records facilitate the use of financial ratios to get more details on a business’ operations and standing. If any information on these statements or accounting books doesn’t match a cash and inventory count, the business or company is forced to scrutinize its operation to resolve the differences.
