2007-03-27 15:56:47 · 5 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Answer 1: Inflow - Outflow = Profit/Loss ?
Answer 2: It all adds up.
Answer 3: By Ogden Nash (I think)
Man was never meant
To remember or invent
What he did with every cent.
2007-03-27 16:04:25 · answer #1 · answered by my 2 cents 4 · 0⤊ 1⤋
I would say there are two principle goals of accounting. One is to provide a picture of the economics of a business. Is the business making money? Two is to measure solvency of a business. Do I have enough cash flow to operate? Note the distinction that you can have an economic business model (make money) but not be able to meet future financial obligations (debt payments, capital requirements).
2007-03-28 00:23:29 · answer #2 · answered by gls_merch 5 · 0⤊ 0⤋
The most common principles they teach you in accounts is this....
Profit = income - expenses
Capital = Assets - liabilities
Accounting is a HUGE subject, but it is more or less revolved around the ones mentioned above.
2007-03-27 23:31:02 · answer #3 · answered by MU.SK 4 · 0⤊ 1⤋
Cash Flow and Disbursement
2007-03-27 23:14:13 · answer #4 · answered by wilma m 6 · 0⤊ 1⤋
Accounting will give u details of what you have earned, what have u spent, what r ur assets and what r ur liabilities. in short, it will let u know whether u r earning enough or not to keep ur expenses going :|)
2007-03-27 23:06:24 · answer #5 · answered by Shreya R 1 · 0⤊ 1⤋