Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you are currently in debt.
The basic accounting equation, also called the balance sheet equation, represents the relationship between the assets, liabilities, and owner's equity of a business.It is the foundation for the double-entry bookkeeping system.For each transaction, the total debits equal the total credits.It can be expressed as.ow it shows owners' interest is equal to property (assets) minus debts (liabilities). Since in a corporation owners are shareholders, owner's interest is called shareholders' equity. Every accounting transaction affects at least one element of the equation, but always balances. Simplest transactions also include:
The Accounting Process (The Accounting Cycle). Accounting process is a continuous and systematic working process that begins with the analysis of business transactions and ends with the preparation of post-closing trial balance.According to going concern concept, it is presume that a business organization will run for an indefinite period.he successive working process of accounting method is called accounting cycle. This cycle begins with the analysis of business transactions and ends with the preparation of a post-closing trial balance. The accounting working process starts with identification of transactions and its journalisation.