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3-1 CHAPTER 3 FINANCIAL ACCOUNTING AND RECORD KEEPING PROCEDURES LIBRARY FUNDS Pursuant to IC 36-12-3-11, the library board may establish funds for money and securities of the public library. All
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Financial accounting is the process of recording, summarizing, and reporting the financial transactions of a business. It involves maintaining accurate and reliable records of the financial activities of a company.
All businesses, regardless of size or type, are required to file financial accounting and records. This includes sole proprietorships, partnerships, corporations, and non-profit organizations.
Financial accounting and records are typically filled out by trained accountants or bookkeepers who have knowledge of accounting principles and regulations. The process involves recording all financial transactions, summarizing them into financial statements, and reporting them to stakeholders.
The purpose of financial accounting and record is to provide accurate and reliable information about the financial position and performance of a business. This information is used by stakeholders such as investors, creditors, and government agencies to make informed decisions.
Financial accounting and records must include details about the business's assets, liabilities, equity, revenues, expenses, and cash flows. This information is used to prepare financial statements such as the balance sheet, income statement, and cash flow statement.
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