BASIC ACCOUNTING
Accounting – is the language of business. To provide information, primarily financial in nature, about
economic events to determine economic decisions.
Users of financial Information






Investors (existing and potential)
Lenders and other creditors
Employees
Customers
Government and their agencies
Public
Accounting Cycle – refers to a series of sequential steps or procedures to accomplish the accounting
process. The cycle is repeated each accounting period.
Steps of Accounting cycle
1. Identification of events to be recorded
IMPORTANT SOURCE DOCUMENTS
OWNERS EQUITY MODEL
BASIC ACCOUNTING MODEL
TO MAKE THE OPERATIONS SYMBOLS THE SAME, WE NEED TO TRANSPOSE