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The accounting system of a business can be defined as the procedure in place to: 1) collect; 2) classify; and 3) summarize events in the life of the company that can be expressed in monetary units. Ultimately, accounting translates into information. Who is this information directed at? It is useful to distinguish two cases, although the boundary between them is not clearly defined
Index 1. Introduction - Definition of Accounting System - Purpose of Accounting Information - Distinction Between Two Types of Information - External Users - Internal Management 2. Balance Sheet and Profit and Loss Statement - Overview of the Balance Sheet - Definition and Importance - Components of the Balance Sheet - Assets - Liabilities - Asset Classification - Fixed Assets - Current Assets - Liability Classification - Long-term Liabilities - Short-term Liabilities 3. Fundamental Accounting Concepts - Total Assets = Total Liabilities - Liquidity and Stability - Working Capital - Financial Reporting 4. Conclusion - Summary of Key Points
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