The document defines key accounting terms used in accounting. It provides definitions for over 50 terms including account, accounting cycle, accounting equation, accounting system, American Institute of Certified Public Accountants, annual report, assets, auditing, balance sheet, business entity, capital stock, certified public accountant, corporation, cost principle, credit, creditor, debit, double-entry accounting, financial accounting, financial position, financial statements, generally accepted accounting principles, going concern assumption, internal control, journal, ledger, liabilities, objectivity principle, owner's equity, partnership, posting, profitability, retained earnings, Securities and Exchange Commission, sole proprietorship, solvency, stockholders, stockholders' equity, and
Presentation on finance fundamentals for nonprofit organizations. Geared towards non-accountants, this presentation deals with the following:
- Characteristics of nonprofits and responsibility for financial information
- Basic review of accounting principles
- Financial statements
- Different members of the finance team
- Financial policies for nonprofits
- Communicating financial results
- Nonprofit tax
Presentation on finance fundamentals for nonprofit organizations. Geared towards non-accountants, this presentation deals with the following:
- Characteristics of nonprofits and responsibility for financial information
- Basic review of accounting principles
- Financial statements
- Different members of the finance team
- Financial policies for nonprofits
- Communicating financial results
- Nonprofit tax
The American Institute of Certified Public Accountants (1941) defines ‘Accounting is the art of recording, classifying and summarising in significant manner and in terms of money, transactions and events which are in part, at least of a financial character and interpreting the results thereof.
Real estate is something that you can physically touch and feel – it's a real good and, therefore, for many financiar ,feels more real. Maybe this partially accounts for the high return on the venture, as from 1978-2004, real estate has had an average return of 8.6%. For many time this investment has generated consistent wealth and long term respect for millions of people.
Fixed Asset Controls and Reporting: Who's Paying Attention to Your Largest As...Duff & Phelps
Often an element of fraud and financial
misstatement, fixed assets get no
respect. Although they’re considered
low risk by auditors, fixed assets need
attention. Are the internal controls really
effective over this perceived low-risk
area? Best practices enhance proper
accounting, valuations and financial
reporting.
The presentation is part of a lecture series on Management Information Systems. It is an overview of the General Ledger and Financial Reporting System (GLFRS) as part of the Accounting Information system (AIS). It also covers an assessment of the role of accounting software and Extensible Business Reporting Language (XBRL).
DOI: http://dx.doi.org/10.13140/RG.2.2.22328.47369
Updated at: https://www.researchgate.net/publication/353851801_General_Ledger_and_Financial_Reporting_System_GLFRS
Mike Zimmerman, CPA will guide you through the basics and also share information on accounting software that is easy to use for a new business. Your company’s books and financial statements represent a score sheet which tells how you are progressing, as well as an early warning system which lets you know when and why the business may be going amiss. Financial statements and the underlying records will provide the basis for many decisions made by outsiders such as banks, landlords, potential investors, and trade creditors as well as taxing authorities and other governing bodies. The necessity for good, well-organized financial records cannot be over-emphasized. One of the greatest mistakes made by owners of small businesses is not keeping good financial records and making improper or poor business decisions based on inadequate information. An accounting or bookkeeping system is like any tool used in your business; it needs to be sophisticated enough to provide the information you need to run your business and simple enough for you to run it (or supervise the bookkeeper).
For Mike Zimmerman's Bio check out: http://incuba8.com/speaker-michael-zimmerman-principal-yeo-yeo-cpas-business-consultants/
The American Institute of Certified Public Accountants (1941) defines ‘Accounting is the art of recording, classifying and summarising in significant manner and in terms of money, transactions and events which are in part, at least of a financial character and interpreting the results thereof.
Real estate is something that you can physically touch and feel – it's a real good and, therefore, for many financiar ,feels more real. Maybe this partially accounts for the high return on the venture, as from 1978-2004, real estate has had an average return of 8.6%. For many time this investment has generated consistent wealth and long term respect for millions of people.
Fixed Asset Controls and Reporting: Who's Paying Attention to Your Largest As...Duff & Phelps
Often an element of fraud and financial
misstatement, fixed assets get no
respect. Although they’re considered
low risk by auditors, fixed assets need
attention. Are the internal controls really
effective over this perceived low-risk
area? Best practices enhance proper
accounting, valuations and financial
reporting.
The presentation is part of a lecture series on Management Information Systems. It is an overview of the General Ledger and Financial Reporting System (GLFRS) as part of the Accounting Information system (AIS). It also covers an assessment of the role of accounting software and Extensible Business Reporting Language (XBRL).
DOI: http://dx.doi.org/10.13140/RG.2.2.22328.47369
Updated at: https://www.researchgate.net/publication/353851801_General_Ledger_and_Financial_Reporting_System_GLFRS
Mike Zimmerman, CPA will guide you through the basics and also share information on accounting software that is easy to use for a new business. Your company’s books and financial statements represent a score sheet which tells how you are progressing, as well as an early warning system which lets you know when and why the business may be going amiss. Financial statements and the underlying records will provide the basis for many decisions made by outsiders such as banks, landlords, potential investors, and trade creditors as well as taxing authorities and other governing bodies. The necessity for good, well-organized financial records cannot be over-emphasized. One of the greatest mistakes made by owners of small businesses is not keeping good financial records and making improper or poor business decisions based on inadequate information. An accounting or bookkeeping system is like any tool used in your business; it needs to be sophisticated enough to provide the information you need to run your business and simple enough for you to run it (or supervise the bookkeeper).
For Mike Zimmerman's Bio check out: http://incuba8.com/speaker-michael-zimmerman-principal-yeo-yeo-cpas-business-consultants/
This PowerPoint presentation on "Accounting Transactions and the Accounting Cycle" provides a comprehensive guide to the key concepts in financial accounting. The presentation covers topics such as the accounting cycle stages, from recording transactions to preparing financial statements. It delves into essential accounting principles, including journal entries, rules of debit and credit, and compound journal entries. The presentation also explains opening entries, relationships between journal and ledger, rules regarding posting, and the importance of trial balance for ensuring ledger accuracy. Additionally, it explores subdivisions of journals, such as sales, purchases, and cash journals. With a professional design featuring a cohesive color scheme and engaging visuals, this presentation aims to enhance understanding of accounting practices.
Financial accounting is a method by which a company records and reports revenue, expenses, and income for a specific period. We follow strict guidelines to ensure that our financial statements are accurate and comply with statutory, financial, legal and regulatory requirements. The data in these reports helps outsiders perform a comprehensive financial analysis of company operations and allocate resources more effectively to business owners, investors, and creditors.
Financial Accounting for 12th Class Students.pptxGets Solution
Introducing our cutting-edge Financial Accounting solution – your trusted partner for precision, efficiency, and profitability. Say goodbye to financial management hassles and embrace a streamlined, future-ready system that empowers your business like never before.
1. Key Accounting Terms
Account
A record used to summarize all increases and decreases in a particular asset,
such as Cash, or any other type of asset, liability, owner’s equity, revenue, or
expense.
Accounting cycle
The sequence of accounting procedures applied in recording, classifying, and
summarizing accounting information. The cycle begins with the occurrence of
business transact ions and concludes with the preparation of financial
statements.
Accounting Equation
Assets are equal to the sum of liabilities plus owner’s equity (A = L + QE). This
equation is reflected in the format of the balance sheet.
Accounting System
The personnel, procedures, records, forms, and devices used by an
organization in developing and communicating accounting information.
American Institute of Certified Public Accountants (AICPA)
The national professional association of certified public accountants (CPAs).
Carries on extensive research and is influential in improving accounting
standards. Also develops auditing standards and administers the Uniform CPA
Examination.
Annual Report
2. A document issued annually by publicly owned corporations to their
stockholders. Includes audited financial statements for several years, as well as
nonfinancial information about the company and its operations.
Assets
Economic resources owned by an entity.
Auditing Performing
An investigation enabling the auditors to express an independent opinion
(auditors’ report) as to the fairness and completeness of a set of financial
statements.
Balance Sheet
The financial statement showing the financial position of an entity by
summarizing its assets, liabilities, and owner’s equity at one specific date.
Business Entity
An economic unit that controls resources, incurs obligations, and engages in
business activities.
Capital Stock
Transferable units of ownership in a corporation.
Certified Public Accountant (CPA)
3. An independent professional accountant licensed by a state to offer auditing
and other accounting services to clients.
Corporation
A business organized as a separate legal entity and chartered by a state, with
ownership divided into transferable shares of capital stock.
Cost Principle
The widely used principle of accounting for assets at their origin al cost to the
current owner.
Credit
An amount entered on the right-hand side of an account. A credit is used to
record a decrease in an asset and an increase in a liability or in owner’s equity.
Creditor
A lender; an entity to which money is owed.
Data base
A storage center of information within a computer-based accounting system.
The idea behind a data base is that data intended for a variety of uses may be
entered into the computer system only once, at which time the information is
stored in the data base. Then, as the information is needed, the computer can
retrieve it from the data base and arrange it in the desired format.
Debit
An amount entered on the left-hand side of an account. A debit is used to
record an increase in an asset and a decrease in a liability or in owner’s equity.
4. Double-entry accounting
A system of recording every business transaction with equal dollar amounts of
both debit and credit entries. As a result of this system, the accounting
equation always remains in balance; in addition, the system makes possible the
measurement of net income and also the use of error-detecting devices such as
a trial balance.
Disclosure (“adequate”)
The accounting principle of providing with financial statements any financial
facts necessary for the proper interpretation of those statements.
Fair
A term used by accountants to describe a set of financial statements that are
complete, not misleading, and prepared in conformity with generally accepted
accounting principles. Auditors express their opinions as to the “fairness” of
financial statements.
Financial Accounting
The development and use of accounting information describing the financial
position of an entity and the results of its operations.
Financial Accounting Standards Board (FASB)
An independent group that conducts research into accounting problems and
issues authoritative pronouncements as to “generally acceptable” accounting
principles.
5. Financial Position
The financial resources and obligations of an organization, as described in a
balance sheet.
Financial Reporting
The process of periodically providing “general-purpose” financial information
(such as financial statements) to persons outside the business organization.
Financial Statements
Four related accounting reports that concisely summarize the current financial
position of an entity and the results of its operations for the preceding year (or
other time period).
Footing
The total of amounts in a column.
Generally Accepted Accounting Principles (GAAP)
The accounting concepts, measurement techniques, and standards of
presentation used in financial statements. Examples include the cost principle
and objectivity.
Going-Concern Assumption
An assumption by accountants that a business will operate indefinitely unless
specific evidence to the contrary exists, such aa impending bankruptcy
Internal Control
All measures used within an organization to assure management that the
organization is operating in accordance with management’s policies and plans.
6. Journal
A chronological record of transactions, showing for each transaction the debits
and credits to be entered in specific ledger accounts. The simplest type of
journal is called a general journal.
Ledger
A loose-leaf book, file, or other record containing all the separate accounts of a
business.
Liabilities
Debts or obligations of an entity that have arisen from past transact ions, The
claims of creditors against the assets of a business.
Objectivity Principle
Accountants’ tendency to base accounting measurements upon dollar amounts
that are factual and subject to independent verification.
Owner’s Equity
The excess of assets over liabilities. The amount of an owner’s net investment
in a business plus profits from successful operations which have been retained
in the business.
Partnership
An unincorporated business owned by two or more persons voluntarily
associated as partners.
Posting
7. The process of transferring information from the journal to individual accounts
in the ledger.
Profitability
An increase in owner’s equity resulting from successful business operations.
Public Information
Information which by law is available to the general public. The annual financial
statements of large publicly owned businesses are public information.
Publicly Held Corporations
Corporations in which members of the general public may buy or sell shares of
capital stock.
Retained Earnings
The portion of the owners’ e4uity in a corporation that has accumulated as a
result of profitable business operations.
Securities and Exchange Commission (SEC)
The federal agency with the legal power to establish financial reporting
requirements for large, publicly owned corporations. Also enforces federal
securities laws, bringing legal action against possible offenders.
Sole Proprietorship
An unincorporated business owned by an individual.
8. Solvency
Having the financial ability to pay debts as they become due.
Stable-Dollar Assumption
An assumption by accountants that the dollar is a stable unit oc measure, like
the mile or the gallon. A simplifying assumption that permits adding or
subtracting dollar amounts originating in different time periods. Unfortunately,
the assumption technically is incorrect and may seriously distort accounting
information during periods of severe inflation.
Stockholders
Owners of capital stock in a corporation; hence, the owners of the corporation.
Stockholders’ Equity
The owners’ equity in an entity organized as a corporation.
Trial balance
A two-column schedule listing the names and the debit or credit balances of
accounts in the ledger.
Transaction
An event that causes an immediate change in the financial position of an entity
and that can be measured objectively in monetary terms. In current practice.
transactions serve as the basis for recording financial activity.
Window dressing
Legitimate measures taken by management to make a business look as strong
as possible at the balance sheet date.
9. Accounting Cycle
The procedures needed to process transactions through an accounting system;
including journalization, posting, adjusting, and preparing financial statements
Capital stock
A non-specific reference to the ownership interests of shareholders in a
corporation
Closing process
The process by which temporary accounts are "zeroed" out and the effects
transferred to retained earnings
Current assets
Assets that will be converted into cash or consumed within one year or the
operating cycle, whichever is longer
Current liabilities
Obligations that will be liquidated within one year or the operating cycle,
whichever is longer
Current ratio
A measure of liquidity, calculated by dividing current assets by current liabilities
Full disclosure principle
All relevant facts that would influence investors' and creditors' judgments about
the company are disclosed in the financial statements or related notes
Income summary
10. A non-financial statement account used only to facilitate the closing process by
summarizing and zeroing-out the revenue and expense accounts
Intangible asset
Lack physical existence, and include items like purchased patents and
copyrights
Liquidity
The ability of a firm to meet its near-term obligations as they come due
Long-term investments
Investments made for long-term holding purposes; including land for
speculation, securities of other companies, etc.
Long-term liabilities
Any obligation that is not current, and include bank loans, mortgage notes, and
the like
Nominal accounts
Accounts that will be reset to a zero balance with each new accounting period;
revenue, expense, and dividend accounts (also called "temporary" accounts)
Operating cycle
The period of time it takes to convert cash back into cash (i.e., purchase
inventory, sell the inventory on account, and collect the receivable)
Other assets
The category of a classified balance sheet for reporting assets that are not
logically attached to one of the other specific sections
Post-closing trial balance
11. Reveals the balance of accounts after the closing process, and consists of
balance sheet accounts only