Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities.. What is the difference between financial accounting and managerial accounting? 2. What are the basic principles of accounting, and why are they important? 3. How does the accrual basis of accounting differ from the cash basis of accounting? 4. What is the purpose of the balance sheet, and what information does it provide about a company's financial position? 5. What are the different types of financial statements, and what information does each one provide? 6. How are assets, liabilities, and equity classified and reported in the balance sheet? 7. What is the income statement, and how does it show a company's profitability over a period of time? 8. How do you calculate the net income of a company, and what does it represent? 9. What is the statement of cash flows, and why is it important for understanding a company's cash position? 10. What is the accounting equation, and how does it relate to the balance sheet? 11. How are expenses and revenues recognized and recorded in accrual accounting?