Definition for : General accounting
The AIM of general accounting is to record and to translate into figures, all of the operations that an entity, usually a company, has carried out during the course of a financial year â investments, financing, Sales, acquisition of Raw materials, payment of wages, rent, etc. To achieve this, is relies on accounting standards and principles which are drawn up by national (the FASB in the USA) or international (IFRS) bodies. General accounting is used to produce financial statements (Income statement, Balance sheet, Cash flow statement and appendices), that are made available to the stakeholders in the company (Shareholders, lenders, employees, tax authorities), and the general public for listed companies. These statements are used to measure the companyâs performance and as a basis for Financial analysis.
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