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STATEMENTS CONTINGENCIES AND EVENTS OCCURING AFTER BALANCE SHEET DATE NET PROFIT OR LOSS FOR THE PERIOD,PRIOR PERIOD AND CHANGES IN ACCOUNTING ESTIMATES DEPRICIATION ACCOUNTING ACCOUNTING FOR CONSTRUCTION CONTRACTS AS-8 ACCOUNTING FOR RESEARCH AND DEVELOPMENT AS-9 AS-10 AS-11 AS-12 AS-13 AS-14 AS-15 AS-16 AS-17 AS-18 AS-19 REVENUE RECOGNITION ACCOUNTING FOR FIXED ASSETS ACCOUNTING FOR EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES ACCOUNTING FOR GOVERNMENT GRANTS ACCOUNTING FOR INVESTMENTS ACCOUNTING FOR AMALGAMATIONS ACCOUNTING FOR RETIREMENT BENEFITS IN THE FINANCIAL STATEMENTS OF EMPLOYERS ACCOUNTING FOR BORROWING COSTS SEGMENTAL REPORTING RELATED PARTY DISCLOSURES LEASES
If you use your car to . The loan removes value from your individual worth. The revenue account is simply the account that tracks all income generated. (I personally believe the terms used in learning to calculate baseball statistics is more complicated than accounting terminology). Assets are accounts that add value to your individual or business worth. The equity in your car would be any money you paid down toward the purchase. The general ledger is the central location for maintaining all your accounts. we will provide a brief overview. Expense accounts are the individual accounts setup to record the financial transactions that occur. Journal entries refer to the posting or entering of the financial transactions to a particular account. without the necessary understanding of basic terms and concepts. For example. An example of a liability would be your car loan. It adds value to your individual worth. Accounts Okay. Equity. value is removed. in your checking account. now you will need to know what we mean by >account. but I prefer to keep absorption levels (and interest) high. as expenditure. Liabilities. invested in individual or business worth. the basic concepts and terms are quite easily grasped. How you apply those transactions. A debit is a transaction of value “added” to an account. Your car has a dollar value attached to it. Today. When you get past the automatic block that many individuals put up upon hearing the word “accounting”. a check is a credit. the actual ledger book has long since been replaced by accounting software that creates a general ledger on the computer. rather than risk the possibility of an individual beginning work as a bookkeeper. so we are going to use very simple definitions and examples. in generating that income. there is generally exposure to accounting terminology and concepts. A credit is a transaction of value “removed” from an account. The concept however has not been altered. Liabilities are accounts that remove value from your individual or business worth. Revenue and Expenses These are all the different types of accounts the accounting system utilizes. We could use the official definitions here. Equity is used to identify the individual contribution of money. Assets. Debits and Credits Every single transaction recorded in the accounting process falls into one of two categories: it is either a debit or a credit. a deposit is a debit. Your personal checking account is established in order to provide a record of individual personal financial transactions you create when you write a check. or other financial equivalent. An example of an asset would be your car. Credit. All of the accounts are listed in a general ledger. or an accounting intern. whether in the form of classroom instruction or as an intern with on-the-job training. However. value is added. Debit. depends upon the type of account you are working with.Basic Accounting Terminology 101 Prior to actually beginning work as an accountant. Accounts are simply established to provide a record of individual business transactions as they apply to a certain area or item. This is as simple as the definition gets in practical application.
Profit and Loss Reports. 4. Balance Sheets. state. 3. Governmental units can use the services of both private and public accountant just as any business entity. Any expense for gas or car repairs would be recorded in an expense account known as “automotive expense”. the income generated from delivering pizzas would be known as revenue. or to give an accounting for your financial transactions. Governmental Accounting: Governmental accounting refers to accounting for a branch or unit of government at any level.operate a pizza delivery service. the accountant is referred to as a public accountant. balancing. A private accountant provides his skills and services to a single employer and receives salary on an employer-employee basis. This type of accounting is done by a trustee. An accounting system offers a method for checking. may it be federal. special funds accounting is used. Both the governmental and conventional accounting methods use the double-entry system of accounting and journals and ledgers. The following are the types of accounting. executor. and reconciling all those transactions in order to produce accurate pictures of our financial health. Fiduciary Accounting: Fiduciary accounting lies in the notion of trust. national and international clientele. Both certified and non certified public accountants can provide public accounting services. To enhance control. 2. administrator. Public accounting is considered to be more professional than private accounting. or anyone in a position of trust. When a practitioner-client relationship exists. The term "accounting" covers many different types of accounting on the basis of the group or groups served. may it be small or multi-national. An individual may knowingly or unknowingly use accounting when he evaluates his financial information and relays the results to others. Accounting is the art of analyzing and interpreting data. The term is used when an employer-employee type of relationship exists even though the employer is some case is a public corporation. Accounting is an indispensable tool in any business. Accounting practices give us a way to keep a record. Governmental accounting is very similar to conventional accounting methods. Public Accounting: Public accounting refers to the accounting service offered by a public accountant to the general public. usable information for individuals and business owners alike. or local. 1. other control measures must be developed. Since profit motive cannot be used as a measure of efficiency in government units. Certified accountants can be single practitioners or by partnership ranging in size from two to hundreds of members. The scope of these accounting firms can include local. Private or Industrial Accounting: This type of accounting refers to accounting activity that is limited only to a single firm. The term private is applied to the accountant and the accounting service he renders. It may not be apparent to some but every business and every individual uses accounting in some form. His work is to keep . and Cash Flow Statements are the end result of compiling all the transactions into meaningful. The object of government accounting units is to give service rather than make profits. Accounting System The reason for establishing any accounting system is to track this information in order to provide for a unified method of “accounting” for all financial transactions as they occur.
5. . National Income Accounting: National income accounting uses the economic or social concept in establishing accounting rather than the usual business entity concept. The national income accounting is responsible in providing the public an estimate of the nation's annual purchasing power.the records and prepares the reports. The concept of proprietorship that is common in the usual types of accounting is non-existent or greatly modified in fiduciary accounting. The GNP or the gross national product is a related term. The fiduciary accountant should seek out and control all property subject to the estate or trust. which refers to the total market value of all the goods and services produced by a country within a given period of time. This may be authorized by or under the jurisdiction of a court of law. usually a calendar year.
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