What is account? What is the most important part of accounts? How to use it bank from?
Answers
Answer:
This article sets out to give its reader an idea of how accounting is used within the banking environment. It will look at the users of Bank accounting and the reports produced on a yearly basis. It does not assume any accounting knowledge on the part of the reader, indeed accountants will find it a bit “noddy”.
Introduction
Every year banks must produce statutory accounts that expose everything the company has. The main purpose of financial accounting is to prepare financial reports that provide information about the bank’s performance to external parties such as investors, creditors, tax authorities and more (see fig 1.1). Managerial accounting contrasts with Financial accounting in that managerial accounting is for internal decision making and does not have to follow any rules issued by standard-setting bodies. Financial accounting, on the other hand, is performed according to Generally Accepted Accounting Principles (GAAP) guidelines.
Answer:
Accounting tells you whether or not you're making a profit, what your cash flow is, what the current value of your company's assets and liabilities is, and which parts of your business are actually making money.