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9/18/15

Introduction

Accounting profession used to make decisions in the financial and business. Several billion US dollars is, in millions of separate business transactions, to exchange hands every day. These are recorded, are reported using a comprehensive set of guidelines, it is called generally accepted accounting principles, such as (GAAP).


Accounting: We decided to make the financial records of business transactions, bookkeeping methods involved in the creation of the documents related to the business of the assets, liabilities and results of operations.


System: Forming a complex whole, interacting, interrelated, or elements that are dependent on each other group.


Accounting system: People, procedures, and resources that are used to collect, record, classification, business, and summarizes financial information of government and other financial companies, and reports.


Double-entry bookkeeping: Habit of recording the business transaction into two equal parts, is called the debit and credit entries. David refers to the left of the column, credits in accounting journal, it refers to the right of the column.

Each transaction both describes.
The object of the transaction - rent, telephone, or salary expenses such as. Sales commissions and interest income.

Payment source of - cash or credit.



Money is ultimately, in the case of items that you buy at the time of the transaction, or perhaps in credit, in any future date, to change the hand in almost all transactions. (Adjusted and closed entry rather than the exception, typical, and create the financial statements, to reset the specific account at the end of the year represents a special entry made by the accountant.) Sometimes, the transaction, at the time of the event, cash will require direct, and such as cash sales at the grocery store. This, it is more common, and is safe to use a checking account for the purchase of routine. These are all considered part of the cash account.Many, and perhaps most, trading in the business, have been made with a credit-based. Companies usually account for 30 days, which is known as the trading account, to purchase their goods and merchandise, or accounts payable management. Sales are usually made in a similar method called accounts receivable.

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