Conclusion

- Okay, let's review the four flavors of accounting. - First, there's bookkeeping. Bookkeeping has been around for 7,000 years. Bookkeeping is simply keeping track of our stuff and gathering information about the transactions that occur in a business or an organization. - It turns out if you don't have bookkeeping, then no higher level accounting is even possible. - So bookkeeping is gathering the transaction data so we have a chance of knowing what is happening in our organization. - The second flavor of accounting is financial accounting. Financial accounting involves summary reports, three pages, the balance sheet, the income statement, and the statement of cash flows. - These summary reports are given to people outside our business who are making decisions with respect to our business. - Maybe a bank is considering whether to loan us money. - Maybe some potential investors are considering whether to invest in our company.…