Accounting is the recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions. Most businesses use a formal accounting cycle to prepare and analyze the major financial statements (balance sheet, income statement, and statement of cash flows). This short video describes how a small business prepares the information used in the accounting cycle. 1). Source documents would include items such as receipts, travel records, etc. financial statements. trial balances. journal entries. stock options.
2). The balance sheet, income statement, and statement of cash flow are the financial statements. statements of equity. journal entries. ledger entries. balance of trade.
3). At the conclusion of the Accounting Cycle are a series of financial statements. Who is the audience to view these documents?