The rules of debit and credit in accounting are based on the double-entry accounting system, which is used to ensure that all financial transactions are recorded accurately and completely. The rules are: Every transaction has two equal and opposite effects on the financial statements. Every debit entry must have a corresponding cred…

A journal in accounting is a record of financial transactions in the order in which they occurred. It is used to record debits and credits and is the first step in the process of creating financial statements. Journal entries are typically organized chronologically and may be used to track specific types of transactions, such as cas…

Financial statements are important for a variety of reasons. Some of the key reasons why financial statements are important include: Providing information for decision-making: Financial statements provide information on a company's financial performance, which can be used by managers, investors, and creditors to make informed d…

Managerial accounting , also called management accounting, is a branch of accounting that provides financial and non-financial information to internal stakeholders such as managers and employees. The main goal of managerial accounting is to help organizations make better decisions by providing information that is relevant, timely, a…

There are several types of transactions in accounting, including: Sales transactions: These occur when a company sells goods or services to customers. Purchase transactions: These occur when a company buys goods or services from suppliers. Cash transactions: These include cash received from customers, cash payments to suppliers, and…

A transaction is a business event that results in a measurable change in an organization's financial position. Transactions can include the exchange of goods or services for money, the purchase or sale of assets, the incurrence of liabilities, or the transfer of ownership of assets. In accounting, transactions are recorded in a…

Cost accounting is a branch of accounting that involves the measurement, analysis, and reporting of the costs associated with a company's products or services. It is used to inform management about the costs of production and to help them make decisions about pricing, inventory management, and cost control. In cost accounting, c…