The purpose of accounting is to keep track of transactions and recording revenue and expenses are important business processes often applies to an accounting department or a financial manager.

This essay hasn't yet been marked by one of our teachers

You can view 4 essays on Accounting & Financial Management that have been Marked by Teachers

The first 200 words of this essay...

Mr T Gary 13 Barley Avenue Essex CM1 2LB

C&V fashions 138 Avon Road

Dear Sir/Madame

The purpose of accounting is to keep track of transactions and recording revenue and expenses are important business processes often applies to an accounting department or a financial manager. Accounting is a business conduct that allows companies to record and analyse financial information that can be used to decide a company's financial status. Financial accounting statements are mainly to show the financial position of a business at a particular point in times and to show how the business has achieved over a specific period. The three main financial accounting statements that help achieve this aims are

* The profit and loss account for the reporting period

* A balance sheet for the business at the end of the reporting period

* A cash flow statement for the reporting period

A balance sheet shows at a specific point in time what resources are owned by a business and also shows how much has been invested in the business and what sources of that investment finance were. However the profit and loss account provides a perspective on