2. An overview of the Basic Principles of the Accounting System
In Chapter 1, I introduced the three main stages of accounting, the different groups interested in the information which accounting aims to provide, and the questions to which each group tends to seek answers.
Below, I have included a chart which summarises the above information neatly and visually so that you can get a better idea for how all the various accounting processes fit together.
This chart will show you the journals, ledgers, accounts and financial reports used for data collection and analysis along with how and where each document fits into the grand accounting scheme. The chart also shows you the five main questions asked of a business or by a business during the accounting process. These questions have been placed within the stages most pertinent to providing the answers. The specific documents most pertinent to answering these questions are also indicated.
