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Following the list and start learning Accounting! Below the list, you can find a short description and preview on what is Accounting about.

1. Income Statement

2. Balance Sheet

3. Cash Flow Statement

4. Connection Between Three Financial Statements

5. Revenue

6. COGS

7. Gross Profit

8. SG&A

9. Operating Income & EBIT

10. Depreciation

11. Amortization

12. EBITDA

13. Net Income

14. Account Receivable

15. Inventory

16. PP&E

17. Debt

18. Account Payable

19. Retained Earnings

20. Dividend

21. Net Working Capital (NWC)

22. Cash Flow From Operations

23. Cash Flow From Investing

24. Cash Flow From Financing

What Is Accounting?

Accounting is a language that can tell the story of a company to other people. This is a term that describes the process of keeping all the financial information within a given period and presenting it clearly to all the shareholders. The major use of Accounting is to accurately record a company’s financial transactions, financial performance, and cash flows.

Accounting is generally classified into two categories: financial Accounting and managerial Accounting. The major difference between the two is that financial Accounting focuses on one organization’s external financial process and prepares information for parties outside, while managerial Accounting focuses on the internal part and aims to assist managers within the organization with decision-making.

Why Accounting?

Accounting involved not only records of transactions, but analytical interpretation as well. Accounting allows a detailed record of an organization’s financial health. An analytical report based on the records can generate useful insights for future corporate strategy in both the short and long run. For businesses, Accounting enables them to analyze the financial performance over a certain time period and further plan for future strategy accordingly. For investors, knowing Accounting allows them to extract useful information for valuation and credit analysis of target companies and thus assists them to make proper investment decisions.

What Will Be Covered in This Section?

This section will introduce the three key financial statements in detail, including dozens of important Accounting terms with explanations, the interrelation between related terms, the significance of certain concepts, and the connections between three financial statements.

Data itself does not give a comprehensive picture, further interpretation of it is of great importance. Thus, this section also includes several financial metrics that provide a lens into the operational efficiency of a company.