A. Performance Measurement

Cost Driver Terminology

In our earlier post, we had discussed about accounting record. Now we will discuss how to properly record each financial transactions into chart of account of accounts. As we know that accounting is a process to present financial information resulted in a period of business operation starting from transaction identification, recording, posting balance, adjusting balance and reporting into financial statements.

Soon after a company has been established, the accounting process also start recording financial transactions occurred. There three main financial transaction types; financing, investing, and operating transactions. Before we move to how accounting records those transactions, let us get back to the history of accounting itself. Accounting is one of scientific discipline to maintain business financial transactions to generate financial reporting and financial statements.

The third financial statement that Susan needs to understand is the Statement of Cash Flows. This statement shows how Susan Feed Logistics cash amount has changed during the time interval shown in the heading of the statement.

Financial statements are the result of accounting process starting from transactions identification, recording, posting, summarizing and reporting occurred in a business process. Accountant using generally accepted accounting principles evaluate the accounting process and present financial statements to various users of financial information.

Balance Sheet - Assets

Introduction to Accounting Principles

Characteristics of Accounting Information

Modern Accounting Concept