This note will explain the meaning of accounting, the distinction between bookkeeping and accounting, highlight the various forms/types of financial statements prepared by businesses, and explain why lawyers should study accounting or the importance of accounting to lawyers.
This note will discuss the various classes of persons that use accounting information. By accounting information, we mainly refer to the financial statements prepared by accountants. Two broad classes of users will, internal users and external users, will be discussed.
This note will discuss the meaning of the accounting cycle and the processes of the accounting cycle. This note will cover key steps in the accounting cycle, particularly identifying transactions, recording them in books of prime entry, posting them to ledgers, preparing a trial balance, and preparing financial statements.
At the heart of accounting is what is known as the accounting equation. This note will discuss this equation, its various forms, and the meaning of its constitutive elements (assets, liabilities, and capital).
This note will explain the double entry system, the rationale behind it, which is the dual aspect of business transactions, and how transactions are recorded using the double entry system.