Professional Documents
Culture Documents
ACCOUNTING - Is An Art of Recording, Classifying, Summarizing, Transaction and Events of A Financial
ACCOUNTING - Is An Art of Recording, Classifying, Summarizing, Transaction and Events of A Financial
Nature of accounting:
a. Recording – journalizing
b. Classifying – posting
c. Summarizing – preparing trial balance and financial statements
d. Interpreting – preparing financial analysis
THE T-ACCOUNT
ACCOUNT
Basic Equation
NON-CURRENT LIABILITITES
a. Mortgage Payable
b. Bonds Payable
c. Loans Payable
B. COST OF SALES
a. Purchases – normal DEBIT
– goods bought for sale
C. EXPENSES – normal DEBIT
a. Salaries and Wages
b. Rent
c. Utilities
d. Advertising
e. Insurance
f. Communications/Telephone
g. Light and Water
h. Transportation
i. Gas and Oil
j. Repairs and Maintenance
k. Representation and Entertainment – to entertain visitors and prospective clients
l. Supplies
m. Depreciation
n. Uncollectible Accounts/Doubtful Accounts/Bad Debts – it depends on the business on what
account they wanted to use.
o. Miscellaneous – expense not classifiable above