Research Project in FABM

Name: Ulimie A. Romero 11-ABM-E

General Accepted Accounting Principles
(GAAP)

-refer to a standardized collection of accounting rules,

processes, and standards that was published by the
Financial Accounting Standards Board (FASB)
Debit

-an item in an account that records a debt, often

found on the left-hand side or column of the account.
Credit

-a legally binding arrangement between two parties

whereby one party lends the other party money or
anything of value and the recipient agrees to return
the lender at a later period, typically with interest.
Double-Entry Accounting

-Every monetary transaction has consequences that

are equal and opposite in at least two separate
accounts; this is a key notion that underpins modern-
day bookkeeping and accounting.
Journal Entry

 - A journal entry is the act of keeping or making a

record of a business or non-business transaction. In an
accounting journal, transactions are written down,
and the debit and credit balances of a company are
shown. The journal entry can have more than one
entry, and each one can be a debit or a credit.
Journal

 - A journal is a detailed account that keeps track of all

of a business’s financial transactions. It will be used to
reconcile accounts and move information to other
official accounting records, like the general ledger, in
the future.
Accounting Process

 - The accounting process is a set of steps that a

business has to go through to keep track of its
financial transactions.
Special Journal

- the only accounting journal that is not a special

journal. These journals are used to keep track of
certain types of high-volume information that would
otherwise be kept in the general ledger, which would
be too much to keep track of.
General Journal

 - refers to a book of original entries, which is where

accountants and bookkeepers write down business
transactions in order of when they happened.
Account

 - A thoroughrecord of all the money that a person or a

company gets and spends is kept in what is known as
an account.
Ledger

 - A ledger isa type of account or record that is used in

accounting to keep track of bookkeeping entries
related to balance sheet and income statement
activities.
Posting

 - When it comes to accounting, “posting” is shifting a

transaction record from a journal to a general ledger,
which is a book that houses all of the financial
accounts for an organization.
General Ledger

-a group of numbered accounts that are utilized by a

company in order to maintain tabs on its financial
operations and to compile financial reports.
Subsidiary Ledger

-an accounting ledger that details the purchase and

payment history of each individual client to whom the
company lends credit.
Trial Balance

 - A trialbalance is a financial report that displays the

closing balances of all accounts in the general ledger at
a certain moment in time. It is also known as an audit
trail.
Worksheet

 - Withinthe accounting department, a document

known as an accounting worksheet is utilized in order
to examine and model account balances.
Expense

 - Anorganization will incur costs associated with its

day-to-day business activities in the form of expenses.
Accounting Equation

 - According to the accounting equation, the total assets

of a company should be equal to the sum of the firm’s
liabilities and the equity held by its shareholders.
Asset

 - Anasset is a resource having economic value that is

owned or controlled by an individual, business, or
country with the hope that it will deliver a future
benefit to the entity that owns or controls the asset.
Liability

 - A firm is said to have a liability when it has an

obligation that will cause the company to forego future
economic rewards in order to fulfill that commitment
to other organizations or entities.
Equity

- Equity represents the value that would be returned

to a company’s shareholders if all of the assets were
liquidated and all of the company’s debts were paid
off
Loan

 - A lendingagreement is known as a loan, and it is

characterized by the provision of financial resources
by one party (the lender) to another (the borrower), in
exchange for payment of interest and the return of the
resources at the conclusion of the lending
arrangement.
Mortgage

 - The long‐term financing used to purchase property

Stocks

 - A portion of ownership in a corporation that enables

the holder to participate in the capital raising efforts
of that firm.
Shareholder

 - A party that is legally recognized as the owner of

shares of a company’s stock is referred to as a
shareholder.
Dividends

- Shareholders of companies are entitled to receive

dividends, which may be thought of as a sort of
income, for each share of stock that they own.
Revenue

-Revenue is the total amount of income generated by

the sale of goods or services related to the company’s
primary operations.
Sales

-Sales refers to the volume of goods and services sold

by a business during a reporting period
Tangible Assets

 - A tangible asset is an asset that has physical

substance
Intangible Assets

 - An intangible asset is an identifiable non-monetary

asset without physical substance.
Accrued Income

 - Accrued income is revenue that’s been earned, but

has yet to be received
Unearned Income

- Unearned income is income not earned from work

Capital

 - The capital means the assets and cash in a business

Drawing

-the record that is kept by a business owner or an

accountant that displays the total amount of money
that business owners have taken out of the company.
Depreciation

 - The value of a company’s fixed assets is said to have

decreased by an amount equal to depreciation during
the course of a fiscal year.
Balance Sheet

 - A balance sheet is a financial statement that contains

details of a company’s assets or liabilities at a specific
point in time
Income Statement

 - An income statement is a type of financial statement

that summarizes a company’s revenue and expenses
for a certain time period.
Cash Flow

- Cash flow refers to the net balance of cash moving

into and out of a business at a specific point in time.
Service Business

 - A firm that provides services to its clients is known as

a service business. These services are performed for
the benefit of the clientele. Some examples of these
responsibilities are transportation, housekeeping,
traveling, providing hospitality, maintenance, and
consulting.
Merchandise Business

 - A company that derives its income from the sale of

merchandise is known as a merchandising business (a
product or inventory)