ABSTRACT
This chapter builds upon the accounting principles discussed to describe four related accounting concepts, namely the accounting process mechanism; the double entry bookkeeping method; the relationship between accounting process and double-entry framework; and the relationship between the accounting financial statements. The accounting process consists of a series of steps that begins with a business transaction and ends with the closing of the accounts and the compilation of the financial statements. The accounting process is a systematic progression of activities that have the objective of producing the financial statements of a business enterprise and which represent a true and fair view of the financial position of an entity. The key objective of adjusting entries is to make sure that the revenues earned in the accounting period are matched by all the costs incurred for that same accounting period. An accounting system typically consists of two types of accounts, namely the permanent accounts and the temporary accounts.
