Basic financial accounting notes3/28/2024 Trial balance.Ĭommunicating: Accounting also includes the communication of financial data like financial statements to the users who analyse them as per individual requirements. Summarising : It is the process of putting the balances of all accounts at one place i.e. Classification refers to the grouping of all the transactions of same nature at one place. It involves recording them in a journal and keeping a systematic record of all of them.Ĭlassifying: After recording the transactions they are classified. Recording : Only those transactions are recorded in books of accounts which can be measured in terms of money. Identifying : Identifying the business transactions from various sources is the first step of involves observing all business activities and identifying those which are considered as financial transactions. Accounting is an art of recording, classifying and summarizing the monetary transactions in an efficient manner and interpreting the results.
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