FINANCE

The accounting cycle, also commonly referred to as accounting process, is a series of procedures in the collection, processing, and communication of financial information. As defined in earlier lessons, accounting involves recording, classifying, summarizing, and interpreting financial information. Financial information is presented in reports called financial statements. But before they can be prepared, accountants need to gather information about

The accounting equation is the unifying concept in accounting that shows the relationships between and among the accounting elements: assets, liabilities, and capital. In this lesson (and the next ones), you will learn about the basic accounting equation and how it stays in balance. Before taking this lesson, be sure to be familiar with the accounting elements. Basic Accounting