BUS 600-SP10, Day 3: Accounting

Accounting is dealing with numbers. It quantitizes company's behavior, so the final result is reflected from accounting results.
GAAP stands for Generally Accepted Accounting Principles. It's the convention of current accepted accounting method
The most important accounting formula is:
A = L + OE.
All the accounting result should show the two sides are equal, otherwise some mis-calculation happens.