Accounting Fundamentals: Financial Performance and Position Analysis

This report aimed at analyzing and understanding the fundamentals of financial accounting and its application in business. Financial accounting is the process of recording, classifying, summarizing and preparing financial reports for the use of financial information users. In this report, the whole cycle of accounting has been illustrated with the help of a practical example. Lastly, the report concludes with the analysis of such a financial statement to understand the financial performance and position of the business.