Overview
Transaction analysis is a fundamental aspect of accounting that involves examining financial transactions to understand their effects on a company's financial statements. By analyzing transactions, businesses can track their income, expenses, and overall financial health, which is crucial for making...
Key Terms
Example: Purchasing inventory is a transaction.
Example: Debiting cash when receiving payment.
Example: Crediting revenue when a sale is made.
Example: A journal entry for a sale includes date, accounts affected, and amounts.
Example: Balance sheets and income statements are types of financial statements.
Example: Assets = Liabilities + Equity.
Related Topics
Financial Reporting
The process of producing statements that disclose an organization's financial status to management, investors, and the government.
intermediateBudgeting
The process of creating a plan to spend your money, which helps in managing finances effectively.
intermediateCost Accounting
A type of accounting that focuses on capturing a company's total production costs.
advancedKey Concepts
debits and creditsaccounting equationjournal entriesfinancial statements