Summary
Technically speaking, accounting is the process of recording the financial history of a company. Accounting is “the language of business,” and business goals are often defined in accounting terms, so software professionals need to be familiar with that language to communicate effectively with the managers and financiers. This chapter covered the following major points:
The balance sheet shows the financial position of a company at a particular moment in time. It's a “snapshot” or “freeze-frame” view of the financial strength of the company and answers the question, “How much is the company worth at this point in time?”
The profit and loss statement explains how the company's financial position changed over a period of time. It answers ...
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