Professional Documents
Culture Documents
Accounting Basic
Accounting Basic
Accounting Basic
The art of recording, classifying and summarizing in terms of money, transactional evens in order to provide
useful information to business.
TRANSACTIONS:
PURCHASES:
when goods are purchased with the intention of selling during the current period or year.
Purchase discount: it is a contra asset account consider as a reduction in the cause of purchase as an offer
given by the seller for customer to pay quickly.
Purchase return: when the inventory of goods is returned if goods are found defective, or in damaged
conditions.
SALES:
money generated by selling goods is known as revenue or sales. includes both cash and credit sales.
RECEIVABLE: claims hold against customers or other parties for money. it includes accounts receivables, notes
receivables, interest receivables.
PAYABLES: sum of money due to be paid by one party to another for any reason. it includes accounts payables,
notes payables, interest payables.
ACCOUNTS:
Assets
Liabilities
Capital
Revenues
Expenses
ASSETS: resources owned by the business or entity and are expressed in monetary terms.
ACCOUNTING EQUATION: