| Accounting is a system of collecting, summarizing, | | | | of a firm at a particular point of time. It can be |
| analyzing and reporting, in monetary terms, | | | | visualized as a snapshot of the financial status of |
| information about an organization. The end | | | | a company. The financial position of the company |
| product of business accounting software is the | | | | is valid for only one day- the reference day. On a |
| financial statements consisting of the balance | | | | preceding or following day, it is bound to be |
| sheet, profit and loss account, and statement of | | | | different.The financial position of a firm as |
| changes in financial position. These statements | | | | disclosed by the balance sheet refers to its |
| are, therefore, the source of information on the | | | | resources and obligations and the interest of its |
| basis of which conclusions can be drawn regarding | | | | owners in the business. In operational terms, the |
| the operations of a firm. The analysis and | | | | balance sheet contains information in respect of |
| interpretation of financial statements would | | | | assets, liabilities and shareholders equity. It can be |
| depend upon the nature and type of information | | | | presented in either of two forms: account form |
| available. | | | | or report form. It is usually presented in account |
| When talking about business accounting software, | | | | form. In the report form a step-wise balance |
| the balance sheet is a significant financial | | | | sheet is prepared, listings asset at the top |
| statement of a firm. In fact, it is called a | | | | followed by liabilities and owners equity. The |
| fundamental accounting report. Other terms to | | | | contents of the balance sheet, in whatever form |
| describe this financial statement are statement of | | | | presented, consist of assets of the firm and the |
| financial position or position statement. As the | | | | means, by which they have been financed, that is, |
| name suggests, the balance sheet provides | | | | liabilities and owners equity. |
| information about the financial standing/ position | | | | |