Accounting

The systematic recording, classifying, summarizing, and interpreting in a significant manner and in terms of money, transactions, and events of a financial character.

At the heart of accounting is the double-entry bookkeeping method. This involves making at least two recording entries for every transaction: a debit in one account and a credit in another account. The method helps prevent errors because the sum of the debits should equal the sum of the credits. The three major financial statements produced by accounting are the income statement, the balance sheet, and the cash flow statement.