ACCOUNTING TERMINOLOGY - PART 1
For the general public, accounting jargon is extremely confusing and downright
frustrating.
If you don’t know your assets from your equity read on for a
simplification of common accounting terms in the following four...
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ACCOUNTING TERMINOLOGY - PART 1
For the general public, accounting jargon is extremely confusing and downright
frustrating.
If you don’t know your assets from your equity read on for a
simplification of common accounting terms in the following four articles.
Accounts - All businesses big and small have to engage in a variety of
transactions that involve buying and selling.
Such activities cause your liabilities,
equity and assets to fluctuate.
Failure to record all of this will cause confusion in
your company’s finances and could get you in trouble with the inland revenue.
In
order to avoid this, you must enter all transactions in accounts.
It is necessary to
create several different accounts including ones for all purchases and others for all
sales and income.
Accounts Payable - Otherwise known as A/P these are accounts that record the
amount of money you spend on goods and services.
On a balance sheet, these
entries will be found in the liability section.
Accounts Rece
Less
