Types of accounting include financial accounting, management accounting, tax

accounting, and auditing, each serving different purposes within organizations and
regulatory requirements.

Types of businesses include sole proprietorship, partnership, corporation, limited

liability company (LLC), and cooperative, each with unique characteristics and
structures.

Accounting is the process of recording, summarizing, analyzing, and reporting

financial transactions to provide insights for decision-making.

Accounting principles and assumptions provide the foundation for financial

reporting. Examples include the accrual principle, going concern assumption, and
matching principle, ensuring consistency and reliability in financial statements.

The fundamental accounting equation is: Assets = Liabilities + Equity.

It represents the relationship between a company's assets, which are resources it
owns, and its liabilities and equity, which are its obligations and ownership
interests.

Double-entry accounting is a system where every transaction is recorded in at least

two accounts, ensuring that debits equal credits and maintaining the balance of the
accounting equation.

A general journal is a chronological record of all financial transactions of a

business, showing the date, description, and amounts debited and credited for each
transaction.

A trial balance is a list of all ledger account balances at a specific point in

time, used to ensure that debits equal credits before preparing financial
statements.

Adjusting entries are journal entries made at the end of an accounting period to
update accounts for accrued expenses, prepaid expenses, unearned revenue, and other
adjustments needed for accurate financial reporting.