Question

What are someways to better understand accounting? There is a lot of terminology so how do you study for exams. Also, do you think about T accounts they good?

Answer 1

Accounting is the system of recording financial transactions with both numbers and tests in the form of financial statements.  The system is largely self-regulated and designed for the users of financial information, who are referred to as stakeholders: business owners, lenders, employees, managers, customers, and others. Stakeholders utilize financial statements to help make business, lending, and investment decisions.

Accounting has several specialized fields and roles. Private (internal) accounting generally refers to accountants who work within a single business entity. Small business accountants may assume general roles which require preparing the records (bookkeeping) and performing bank reconciliations. Accounting professionals are generally divided into three fields: tax, audit, and advisory.

Ways for preparing for exams

First of all we should kmow our material it includes all such matters as which syllabus and concepts applicable.

Keep up with all the lessons and understand each concept and try to practice the problems just by looking at them they seems to be easy but while doing them in paper we wont get the correct process so thoroughly go with practice. You should analyse your thoughts while doing problems thus we should sit in an study environment to keeo our mind alright.

T accounts

It is a graphical representstion of a genereal ledger account. These T accounts were prepared for showing various balances of transactions, and the debit entries are shown on the left side of T accounts and credit items are shown on the right side of the T account. A number of T aacounts are clustered together to show all of the accounts affected by the accounting transaction. IT IS TREATED AS FUNDAMENTALTRAINING TOOL IN DOUBLE ENTRY ACCOUNTING.

It presents a clear presentation of flow of the transactions through the accounts in which transactions are stored. and also clarifies more accountingtransactions. It is not used for day to day accounting transactions since journal entries were passed in a chronological order and thus T accounts were very good in preparation of accounting