ABSTRACT
This chapter helps us to gain an understanding of accounting methods and accounting system infrastructure. An accounting system processes the recorded information into financial statements. These statements provide an assessment of our current financial status and details pertaining to all of the individual financial transactions. In the business world, meeting financial obligations and attaining profit goals require astute management of two primary components, cash flow and expenses. Cash flow represents the amount of revenue a company receives from the sale of goods and services in relation to its expenses. It can be thought of in terms of the balance between income and expenses. Expenses are all the costs associated with the sales of goods and services and those costs associated with business operations. Maximizing profit can only be achieved with an accounting system that enables management to monitor the financial status of the company on a daily basis.
