Examples of books of the company regularly reviews its profit and loss for a month, quarter or a fiscal measure, and publish the results in a profit and loss as it is called a profit and loss account. These statements include items such as accounts receivable and liabilities. It can also be quite complex issues such as retained earnings and accelerated depreciation. Start from the top level accounting and organization.
Most of the affected accounts, but a simple book. This is the process that makes each transaction in each account, every penny due and cents for every dollar spent and collected.
But can business owners, individual owners or millions of shareholders, most of them with summaries of these transactions in the financial statement. The financial statement that summarizes the assets of the company. The value of an investment is what is the cost when acquired first.
The financial statement also records what the sources of assets. Some assets in the form of loans are repaid. Earnings are also an advantage for the company.
In this double entry for the obligations referred to are also summarized. Of course, a company that wants to offset a larger amount of assets, liabilities and produce profits. The management of these two elements is the essence of accounting.
It is a system for doing this, not all companies or individuals can develop their own systems of accounting, the result would be chaos!