Accounting – Terminology Made Simple
The basis for the bookkeeping is no mystery, so every credit must be creditworthy, but which and where does it begin?
Allows you to first explain the terminology and future articles
INCOME –
This can be divided into two groups
1. Selling – this is money from the sale of goods or services before taking any cost or discount, etc.
2. Other Income – This is all the money that is entered into the business, interest, discounts or anything that is not directly related to the enterprise's product or service.
EXPENDITURE –
2 groups,
1. Sales costs – directly bought items including labor (wages) to sell your sales.
2. Costs – Everything else you have to pay for running a business.
Example: Say that your business accounts for wooden boxes, purchased wood and carpeting as a direct cost, but the used electricity and the paper used for the invoices do not.
PROFIT AND LOSS –
Gross profit (or loss) between sales and sales costs
Net profit (or loss) : Profits are not necessarily equal to the bank's money, profits are a number on which stock can be represented, factory material, semi-finished projects or fixed assets. This is ironic, but the enterprise may be a heavy overdraft, but it is still profitable – it is called cash flow problem (or "check in email").
DEVICES –
They can be divided into 2 groups.
first Fixed assets owned by the business, such as buildings, plant and equipment, vehicles, etc. Things that are needed to generate income and require long-time business, which can not be converted into cash.
2. Short-term items (over 12 months) easily converted into cash and of course cash, bank accounts, short-term investments and debtors
LIABILITIES –
broken down into two groups [19659002] 1. Long-term liabilities – bonds, HP, etc., which are to be paid over a period of 12 months.
2. Short-term liabilities – all that are to be paid in the current financial year (12 months) such as creditors, short-term loans and if they do not take out a bank account if an overdraft facility is in progress
SHAREHOLDERS ' –
that the business owner and the business can be considered as two separate units, so even if you are the sole owner of the business – you are not the business.
understood that it was easy to see that the Shareholder Share was the difference between the assets and liabilities, and depending on how the owner would have to fluctuate or the holder should belong to the enterprise.
PERSONS –
Business Money
AMOUNTS –
People Who Have To Pay Money
INCOME INCOME –
Records Daily Revenues and Expenses for the Financial Year. At the end of each financial year, the profit and loss account values are reset to the beginning of the new year and only the gain or loss is transferred to the balance sheet.
BALANCE SHEET –
A snapshot is the status of a business at any time in the Assets, Resources and Shareholdings.
DEBITS & CREDITS –
Note: Not the same as Debtors and Creditors (see above)
When recording transactions, consider the following: divide your page into two columns – the Credits on the right (just remember the dogs first, the second of the cats). Now comes the "Which It Lies Where"
Costs and Costs – Debit
Income – Credit
Tools – Load
TASK BULLET –
Once you have ordered everything in your two columns, add them to each one and balance them (if you have not pressed them somewhere) – this is the trial version and it comes from gathering all the information to prepare a business report.
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