Business Activities and Transactions
Every man lives by exchanging.
A reporting entity issues financial statements, which contain information on its financial position and performance. The information is the cumulative effect of transactions that happened during the reporting period.
Why this course
If the object of the accountant’s work is to be narrowed down to its finest detail, it would lead to transactions. It is absurd to try learning a task without knowing the object of the task. Unless born to entrepreneurs and grew up in a world of business and finance, one’s experience with transactions will be that of an ordinary buyer. Transactions should be understood so that these can be taken up properly in the accounting records.
What you will learn
The course discusses the three types of business activities and the transactions under each type. The classification is useful to decision makers in evaluating the entity’s financial position, performance, and cash flows. The most common business transactions are discussed. These transactions are repetitive and account for the bulk of business activities. They are less complex than other major, but infrequent transactions.