1. Accounting principles are set of rules, regulations and guidelines that companies must obey and follow when submitting financial reports. The number purpose of accounting principles is to make sure that the company's financial reports and statements are accurate, consistent, complete and comparable. Accounting principles are great help hostile and lessen or even stop accounting fraud by increasing transparency.

 

2. Cash flow- 

Cash flow is the movement of money in and out of a company or it is the amount of money that goes in and goes out of the company. A cash flow occurs when money actually changes hands from one person to another or from a company to another.

 

3. describe ledgers and financial statement 

 

Accounting ledger is record or an account,containing the information that are necessary in  preparing financial statements and reports.

 

Financial statements are written records that possesses the business activities and the financial performance of a company.  Financial statements include:Balance sheet,Income statement, Cash flow statement.

 

 

 

4. describe profit and loss statements

 

Profit describes the financial benefit realized when revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity in question. Any profits earned funnel back to business owners, who choose to either pocket the cash or reinvest it back into the business 

 

An income statement or profit and loss account is one of the financial statements of a company and shows the company's revenues and expenses during a particular period. It indicates how the revenues are transformed into the net income or net profit.

 

 

Decision making is the important skill of a leader. It is also vital every day in your personal life. Some decisions are simple and are almost automatic while others can be very difficult. Wrong decisions can bring consequences that one is forced to live with for a long time. We spend an inordinate amount of time and energy making choices and weighing out options in every day situations. There are often trade-offs and compromises.

 

The fundamental principles of accounting are here to guide every account or finance majors in making task.It guiding principles to perform such tasks.

These principles are used in every step of the accounting process for the proper representation of the financial position of the business.

 

Step-by-step explanation

An entity must prepare its financial statements as per acceptable accounting principles in order to present a true and fair view of the state of affairs of the entity