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Jumat, 13 April 2012

Financial Accounting

    It is understandable that financial accounting is part of the accounting related to the preparation of financial statements for external parties such as shareholders, creditors, suppliers, and government.
   The main principles used in financial accounting is the accounting equation (Assets = Liabilities + Equity). Assets are property owned company, is used for company operations in an effort to create revenue.
    Financial accounting issues related to the recording of transactions for a company or organization and preparation of periodic reports from the record.
    This report was prepared for the public interest and is typically used to assess the achievements of the company owner or manager is used as a manager of financial responsibility towards the shareholders.

    Meanwhile, here is the capital paid-in capital by the owner of the company. Capital can also be said to be the difference between assets minus debts. While the debt is owned enterprises liabilities, is an element of funding for the provision of working capital for the company's operations.

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