AccountingThe accounting function c

AccountingThe accounting function creates reports to summarize the results of business activity, including the balance sheet, income statement, and statement of cash flows. All accounting reports are produced at the end of accounting periods, which are generally monthly, quarterly, and annually. The annual reporting period can be defined as any 12-month period and doesn’t necessarily coincide with a calendar year (January through December).An annual reporting period that is different from a calendar year is known as a fiscal year. Many companies, for example, have fiscal years that begin on July 1 and end on June 30 of the following calendar year.The balance sheet is a picture of the financial condition of the organization on a specific day, usually the last day of the accounting period. Information on the balance sheet includes the company’s assets, liabilities, and equity. This report is known as a balance sheet because the total of the liabilities and the equity must equal the total of the assets as represented by the balance sheet formula:Assets = Liabilities + Equity