Accounts is a record.
Of all the financial transactions takes place in an organisation.
Collection of that is accounts.
It's a financial transaction when money is involved.
Money should come in, go out, or due to me or by me. If one of this 4 things happen someone should record it.
Collection of this is called accounts.
Objective of business enterprise is making profit and it is not obvious.
Whatever gets recorded, every ones in a while gets summarised.
Summary of this is Financial statements.
Whatever get's recorded must appear either on the phase of
Profit and Loss - Expenses and Income
Balance Sheet - Liabilities and Assets.
All the data that goes into it comes from the Accounting records of the organisation.
Therefore in an organisation nothing can happen that will not be shown on the phase of these financial statements.
Everything gets recorded
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