Accounting Principles & Concepts

Question 1

What is the fundamental concept of Finance accounting

Answer 1

the process of recording, summarizing and reporting a company's business transactions through financial statements.
 Such as 
 the income statement,
 the balance sheet,
 the cash flow statement 
 statement of retained earnings.

Question 2

What is accrual accounting

Answer 2

Revenue is recorded when earned

expenses are recorded when consumed

Question 3

What is cash basis accounting

Answer 3

Revenue is recorded when cash is received from customers

expenses are recorded when cash is paid to suppliers in employees

Question 4

What are the three tools of analysis in finance accounting

Answer 4

horizontal analysis
vertical analysis
ratio & trend analysis