From – “Cover Your Nut” – 1.2 Basic Accounting Principles

     Accounting is a system for recording and measuring the results of an economic activity.  Accounting gives us the information that we need to plan for the future, utilizing the information from the past.  The results of the application of accounting information through budgets gives us the guidelines to set product prices, plan for purchasing or building of materials, and planning for increases in future individual expense items based on historical facts rather than flip-a-coin guesses.