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Saturday, May 07, 2016

ACCOUNTING TERMS

Saturday, May 07, 2016

Accounting Principles

Accounting principles are the set of laws and course of action that companies must pursue when reporting economic data. The general set of bookkeeping principles is the usually established accounting principles.

Assets

Any item of financial worth own by a person or business, particularly that which could be transformed to money. Examples are cash, securities, stock, office tools, real estate, a car, accounts receivable and other property.

Bank Reconcilition

The method of adjusting an account equilibrium suggested by a bank to reveal dealings that have taken place since the reporting time. Example: Each month Sabu is in charge to review the bank settlement(reconcilition). He has to ensure each and every one of the admissions are in there and checked.

BookKeeping

Bookkeeping is the documentation of fiscal dealings, and is element of the procedure of secretarial in commerce. Dealings comprise procure, transaction, revenue, and expenditure by a person or an association/company. There are more than a few average ways of bookkeeping, for example the one-entry bookkeeping structure and the multi-entry bookkeeping structure, but, at the same time as they may be considered of as "real" bookkeeping, every procedure that engages the documentation of monetary dealings is a bookkeeping method.

Chart of Accounts

A catalog of the entire account names and numbers worn in a business’s universal ledger. Example: Our chart of accounts told us all the names of the people in our company's ledger and we were glad to have that information.

3 comments:

  1. Taxation refers to the act of a taxing authority actually levying tax. Taxation as a term applies to all types of taxes, from income to gift to estate taxes. It is usually referred to as an act; any revenue collected is usually called "taxes”.

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  2. Variance analysis is the quantitative investigation of the difference between actual and planned behavior. This analysis is used to maintain control over a business. For example, if you budget for sales to be $10,000 and actual sales are $8,000, variance analysis yields a difference of $2,000.

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  3. Revenue recognition is an accounting principle under generally accepted accounting principles (GAAP) that determines the specific conditions under which income becomes realized as revenue. Generally, revenue is recognized only when a specific critical event has occurred and the amount of revenue is measurable.

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