An audit is a systematic examination and verification of financial information, records, and statements to determine their accuracy, completeness, and compliance with accounting standards, laws, and regulations. Audits are conducted by trained professionals known as auditors or certified public accountants (CPAs) who are independent of the organization being audited. Auditing serves several important purposes and […]
Generally Accepted Accounting Principles (GAAP) are a set of accounting standards and principles used to prepare and present financial statements. GAAP provides a framework for how financial information should be recorded, reported, and disclosed by companies. Here are some key use cases for GAAP: GAAP is essential for ensuring the consistency, reliability, and transparency of […]
The statement of cash flows, also known as the cash flow statement, is a financial statement that provides insights into the cash inflows and outflows of a company over a specific period. It categorizes cash flows into three main activities: operating, investing, and financing. Here are the key parts of the statement of cash flows: […]
An income statement, also known as a profit and loss statement or statement of income, is one of the three primary financial statements used to assess a company’s financial performance. It provides a summary of a company’s revenues, expenses, gains, and losses over a specific period of time, typically a quarter or a year. The […]