The world-famous Lingo has become simple
Today … again … I scraped my head for an accounting disorder for which the owner has been paying a lot of money for years for an accountant. How did it happen? If you do not know the basics, you're a sitting duck, my friend. You know, the accountants are doing this right. Strange words are used to think they're smarter than you are. Keep it in the dark. Or the less ugly just do not know better.
Good bookkeepers and accountants want you to learn the language. I want to help make a bling, baby. Read and Learn. Keep this slogan handy when working with your colleagues. Use it to start your way to financial literacy!
Bling Lingo – The Glossary of Common Accounting Terms …
ACCOUNT RISK: The basis of the balance sheet is the basic accounting equation. This is
Assets = Shares
The Company's own capital may be held by a person other than its owner. This is called responsibility. As we usually have obligations, the accounting equation is usually written …
Assets = Liabilities + Ownership Capital
ACCOUNTS: Business Increases and Defines Your Assets, Liabilities and Fairness . Its accounting system records these activities in accounts. Multiple bills are required to sum up the equity account of each asset, liability and owner of all the income and expense shown in the balance sheet and income statement. You may have some accounts or corporations, depending on the detailed information you need to lead your business.
FINANCIAL ACCOUNTS: Also called A / P. These are the invoices that your business is required to pay to the government or its suppliers. When purchased & # 39; but you have not paid it (for example, when you buy it), you must create a payment obligation. These can be found in the liability section of the balance sheet.
AVAILABLE ACCOUNTS: Also called A / R. If you sell something to someone and you do not pay that minute you will create an account. This is the amount of money your customers pay for but not yet paid for your products and services. Receivables are included in the assets of the balance sheet.
ACCRUAL BASE ACCOUNTING: When accruing accrual accounting, the & # 39; costs and sales at the time of the transaction. This is the most accurate way to account for your business. If you sell something to Mrs. Fernwick today, you would still pay for sales today, even if you pay within two months. If you buy toners tonight, you're counting it today, even if you pay next month when the house's house statement arrives. The cash-based accounting records are recorded on the receipt of cash on the sale and the expense from the loss of control. It is not as accurate as what is happening to you.
DEVICES: A & # 39; things & # 39; the owner of the company. All values - money, debts, trucks, inventory, land. Current assets can easily be convertible. (Officially within one year). The most recent current assets are, of course, cash. Receivables change in cash as the customer pays, hopefully within a month. So receivables are current assets. So inventory.
Fixed assets are things they do not want to make money for operating money. For example, you do not want to sell the building to a housing estate account. Assets the assets in the order of liquidity (how much cash is in cash) in the balance sheet.
BALANCE : The balance reflects the company's financial position at a given time. The basic accounting formula is the basis of the balance sheet:
Assets = Sources + Equity Shares
Balance does not start. This is the cumulative score from business day to report creation.
CASH FLOW: Movement and timing of money, in and out of business. In addition to the balance sheet and the statement of income, it is worth reporting cash flow through your business. The company can be profitable, but cash is weak and unable to pay its bills. Not good!
The cash flow statement helps you know how much money has come and gone for a while. The cash flow projection is a fictitious expectation of what cash flow will be in the future.
Suppose you want to buy a new truck with cash. But this purchase clears the bank account and leaves the payroll without cash! For cash flow reasons, you may decide to buy your payments on a truck.
ACCORDING TO ACCOUNTS: Full Account Accounts. Every business transaction needs to be noted to keep track of things. Think of your accounts as a peg board that freezes your business activities.
HITEL: In double income accounts, credit is applied to increase the liability or equity. The loan reduces the asset's account. There is a charge for each loan. These are two balancing elements of the journal entry. Loans and debts balance the basic accounting equation (Assets = Sources + Owner's Equity) while recording business activities.
CONDITIONS: The deposit account is entered in double-entry accounting to increase the asset account. The load reduces the liability or the equity account. There is a debt for every debt.
DIRECT EXPENSES: Costs of goods sold, sales or labor costs too. These are costs that include labor costs and materials. These costs can be directly tracked for a particular job. If the job did not happen, direct costs would not have been incurred. (Comparison of direct costs of indirect costs to better understand the term.) Direct costs are found in the income statement directly under income accounts.
Income – Direct Costs = Gross Margin
Double-entry Accounting: Accounting system used to track business. The dual accounting records include the balance sheet: Assets = Sources + Ownership Capital. When the dollars are recorded on a bill, they are accounted for in another account, so that the activity is well documented and the balance is balanced.
Do not necessarily have to be an expert in double-entry accounting, but the person who is responsible for making the financial statements is feeling much better. If this is you, go back to the book and focus on the "gray" & # 39; bedding. Learn the examples and see how the double entry method works to control and balance books.
Remember the law of the universe … what's going on, it's coming. This is the essence of double entry accounting.
EQUITY: Received for the company for receiving "stuff". Shares show the ownership of assets or claims against assets. If a person other than his / her owner claims on the device, then it is a responsibility.
Total Assets – Total Liabilities = Net Equity
This is another way to map out the basic accounting equation that emphasizes the size of your asset. Net capital is also called net worth.
REPRESENTATION: It is also called a cost. Costs are a decrease in equity. These dollars were paid to suppliers, sellers, Uncle Sam, employees, charity organizations, and so on. Keep in mind that you should pay for your bills because you earn money to earn money. Expenditures are included in the income statement. They must be classified into two categories, direct costs and indirect costs. The basic equation of the profit and loss account:
Revenue – Expenditures = Profit
(If it is possible to earn income such as expenses … or loss if costs represent more than revenue.)  Please note that all costs should be included in the sale price. The customer pays for everything. In return, the customer provides his services. What a business!
FINANCIAL STATEMENTS: refers to the balance sheet and profit and loss statement. The balance sheet is a report that demonstrates the company's financial position. The profit and loss account (also known as the profit and loss account or "P & L") is a summary of the profit performance.
Financial statements may include supporting documents such as cash flow reports, claims reports, transaction records, and so on.
Financial statements are what the bank wants to see before lending it. The IRS insists on giving them the score and asking financial statements each year.
At one time, accounting systems were kept in a book listing the growth and decline of all the company's accounts. This book was called a general book. Today, he probably has a computerized accounting system. However, the general ledger is a collection of all balance sheet and income statement … all assets, liabilities and equity. This report shows all activities in the company. Often this list is called a detailed trial version of the accounting program report menu. A detailed trial is the most popular report when I try to find a bug or make sure we've provided information in the right accounts.
GROSS INCOME: This is how much money left after deducting direct costs from the sale price.
Income – Direct Cost = Gross Profit If expressed as a percentage, this is the gross margin.
This is a good number that needs to be reviewed each month and monitor the percentage of total sales over time. The higher the better the gross margin! At this moment, you need enough money to pay all of your indirect costs and still earn you a profit.
INCOME STATEMENT: is also the profit or loss statement, the P & L or the Operating Statement. This is a report that demonstrates the change in the company's equity as a result of the business. This lists the revenue (or revenue or sales), deducts the costs and shows the profit J! (Or Loss L.) This report refers to a time and summarizes the money and the money.
The Profit and Loss Statement is like a magnifying glass showing the activities that cause changes in the balance sheet total.
INDIRECT COST: It is also referred to as general expenses or operating costs. These costs are indirectly linked to the services you provide. Indirect costs include office costs, rent, advertisements, telephones, utilities … the costs of "roofing costs". All costs that are not direct costs are indirect costs. Indirect costs do not go away when sales fall.
KIT: Also called a stock. These are materials that you buy with the intention to sell but have not yet sold them. The kit is located in the balance tool. It's a current asset, as it converts to cash when it sells. Beware of cash to stock. You can run out of money. Work with suppliers to keep the kit small.
JOURNAL: This is a company diary. It keeps track of business activities from time to time. All business activities are listed as log entries. The double entry lists the debit and credit account for each transaction on the day it was made. In the Accounting System Reports menu, journal entries are included in the Transaction Registry.
OBLIGATIONS: Like stocks, these sources of resources – how we got the & # 39; These are receivables from persons other than the owner. This is what I owe to the company! Payables, payables, and loans are liabilities. Liabilities are short-term liabilities (payable over one year, such as payroll) or long-term liabilities (repayment term is more than one year, such as real estate mortgages).
MONEY : also known as moola, scratch, gold, coins, cash, change, chicken, green items, BLING etc. energy, goods and services. Things you want to buy or buy. Beats trade for chickens in the global marketplace.
Money alone or good or bad. I want you to do a lot and do great things with her.
NET INCOME: It is also called Net Profit, Net Profit, Current Profit or Bottom Line. (It is no wonder that accounting is confusing – see all the words that mean the same!)
After you've deducted all revenue (including taxes) from your revenue, then net income remained. The net word is essential, essential. This is a very important item in the income statement because it shows how much money left behind after doing business. Think about net income as a single basketball game of a series. Net Income tells you whether or not you have won or how long it has been for a given period of time.
Incidentally, if net income is a negative number, it was called a loss. You want to avoid these. Net profit is recognized in equity as current income (or net profit). The net result results in an increase in shareholder's equity. The loss results in a reduction in the owner's equity.
SAVED SUBSIDIES: Amount of net income earned and retained by the enterprise. If net income is like a score after a basketball game, the remaining revenue is life cycle stats. The retained earnings are included in the balance sheet total. It will observe how much capital has been acquired and maintained by the owners (paid-in capital).
Every month net profit is shown as current revenue in the balance sheet. At the end of the year, the current profit will be transferred to the retained earnings account.
Source by sbobet