Accounting Cycle Step 1: Execute Business Events

Fundamentals of Accounting Introduction to the Accounting Cycle
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Transcript

Executing business events? Well, the world of transactions I'll talk about in more videos, the world of business events is a bit larger than the world of transactions. And actually, the principles we're talking about could be applied to any kind of activity that needs to be measured. It's not just financial. It's a, it's your, if you're involved in creating code and writing programs, the number of lines of code you write could be called transactions, the amount of time you have left to produce the, the code base that you need to do the programs you need to finish. That's a balance.

The balance is how much time or how much has been written. The individual transactions of writing code, or having days passed or Time passed in working to our project is the income statement. So it's not just on financial things, the same principles apply for all kinds of activities. That's why I talk about executing Business events. Business events are things that we want to measure. And there The world is a little bit larger than transactions.

But this is simple things of buying things at stores, paying online for bills, getting paid for work and services you need to do. Those are executing business events.

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