Accounting is important for all the economic events (transactions), because of that you should know about accounting if you involved in some economic event. Accounting is the process of identifying the economic events of some business or nonbusiness. Accounting is also the process of recording the economic events of some business or nonbusiness. The last principle you should know about Accounting is the process of communicating the economic events of some business or nonbusiness to interested users of the information.
The process of identifying involves selecting economic events that are considered evidence of economic activity relevant to a particular business or nonbusiness.
The process of recording involves keeping a chronological diary of economic events in an orderly and systematic manner.
The process of communicating involves preparing and distributing financial statements (accounting reports).
That's all for the first knowledge of accounting from me.
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