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Accounting is the process of recording financial transactions that an entity has undertaken. The term entity refers to any: Accounting Assignment, UOW, UK
| University | University of Warwick (UOW) |
| Subject | Accounting |
Accounting is the process of recording financial transactions that an entity has undertaken. The term entity refers to any organization that records financial transactions and includes, manufacturing companies, retailers, banks, fund companies, and not-for-profit organizations.
An entity records its financial transactions so that it can determine the financial performance and financial position of the entity. Each entity must prepare a set of financial statements, usually on an annual basis. A complete set of financial statements includes:
- Statement of Profit or loss
- Statement of Financial Position
- Statement of Cash Flows;
- Statement of Changes in Equity; and
- Notes to the financial statements.
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