Accounting

Accounting is the language of business.Corporations need to communicate their results to the world. Their audience includes employees,investors,creditors customers,suppliers,and communities. withing the company, accounting information provides a means to control,evaluate,and plan operations. Accounting is numbers so that business activity can be recorded summarized, and analyzed.
If you want to realize how the company runs, Accounting will let you know.The concept as below: at the first :the balance sheet:Assets=liabilities + Owner's Equity, are
Accounting records and statements always balance, the statements can be interpreted by using ratios: P/E Ratio::company per share divided by company earnings and remember the lower number we get the better company runs. The second income statement and the third cash flow besides that also We need to know depreciation belongs to assets contrast account and expense belongs to Owner's Equity contrast account because if expense increase equal Owner's equity decrease but revenue increase equal Owner's equity increase.
Accounting conservation and historic cost. for example: The Owner's of company bought a building in 1998, and if Accountant or CPA want to evaluate the owner's assets in 2001, the value of building base on in 1998 instead of 2001.

If you guys want to know more and more knowledge about Accounting,go to MBA class and you will learn from DR. Tao.