Question: What Is The Basic Terminology Of Accounting?

What are the types of accounting?

In this article, we’ll cover:Financial Accounting.Cost Accounting.Auditing.Managerial Accounting.Accounting Information Systems.Tax Accounting.Forensic Accounting.Fiduciary Accounting..

What are the 12 accounting principles?

Here are some of the most commonly accepted accounting principles and how they apply to an accountant’s role and duties:Accrual principle. … Conservatism principle. … Consistency principle. … Cost principle. … Economic entity principle. … Full disclosure principle. … Going concern principle. … Matching principle.More items…•

What is an example of GAAP?

GAAP Example For example, Natalie is the CFO at a large, multinational corporation. Her work, hard and crucial, effects the decisions of the entire company. She must use Generally Accepted Accounting Principles (GAAP) to reflect company accounts very carefully to ensure the success of her employer.

What are the 2 types of accounting?

The two primary methods of accounting are accrual accounting and cash accounting. Cash accounting reports revenues and expenses as they are received and paid; accrual accounting reports them as they are earned and incurred.

What is CC in accounting?

A Cash Credit (CC) is a short-term source of financing for a company. … It enables a company to withdraw money from a bank account without keeping a credit balance. The account is limited to only borrowing up to the borrowing limit. Also, interest.

What are the 10 accounting concepts?

: Business Entity, Money Measurement, Going Concern, Accounting Period, Cost Concept, Duality Aspect concept, Realisation Concept, Accrual Concept and Matching Concept.

What is the 8 branches of accounting?

The famous branches or types of accounting include: financial accounting, managerial accounting, cost accounting, auditing, taxation, AIS, fiduciary, and forensic accounting.

What is accounts receivable journal entry?

Accounts Receivable Journal Entry. Account receivable is the amount which the company owes from the customer for selling its goods or services and the journal entry to record such credit sales of goods and services is passed by debiting the accounts receivable account with the corresponding credit to the Sales account.

What is a terminology?

Terminology is a general word for the group of specialized words or meanings relating to a particular field, and also the study of such terms and their use. This is also known as terminology science.

What are the 10 accounting principles?

The best way to understand the GAAP requirements is to look at the ten principles of accounting.Economic Entity Principle. … Monetary Unit Principle. … Time Period Principle. … Cost Principle. … Full Disclosure Principle. … Going Concern Principle. … Matching Principle. … Revenue Recognition Principle.More items…

What are 3 types of accounts?

What Are The 3 Types of Accounts in Accounting?Personal Account.Real Account.Nominal Account.

What is petty cash book?

The petty cash book is a recordation of petty cash expenditures, sorted by date. In most cases, the petty cash book is an actual ledger book, rather than a computer record. … This format is an excellent way to monitor the current amount of petty cash remaining on hand.

What are the 4 principles of GAAP?

Understanding GAAP1.) Principle of Regularity.2.) Principle of Consistency.3.) Principle of Sincerity.4.) Principle of Permanence of Methods.5.) Principle of Non-Compensation.6.) Principle of Prudence.7.) Principle of Continuity.8.) Principle of Periodicity.More items…•

What are the 3 steps of accounting?

Part of this process includes the three stages of accounting: collection, processing and reporting.

What is another name for accounting?

What is another word for accounting?accountargumentexplanationrationalereasonaccountancybookkeepingbook-keepingcalculatingcomputing138 more rows

What are the 5 types of accounts?

The 5 core types of accounts in accountingAssets.Expenses.Liabilities.Equity.Income or revenue.

What are the basic terms used in accounting?

Basic accounting terms, acronyms, abbreviations and concepts to rememberAccounts receivable (AR) … Accounting (ACCG) … Accounts payable (AP) … Assets (fixed and current) (FA, CA) … Asset classes. … Balance sheet (BS) … Capital (CAP) … Cash flow (CF)More items…•

What is the meaning of accounting terminology?

Accounting terminology gives the complete description of the terms that are used and it is important to know the accounting terminology before delving into the subject.

What are the 5 basic accounting principles?

What are the 5 basic principles of accounting?Revenue Recognition Principle. When you are recording information about your business, you need to consider the revenue recognition principle. … Cost Principle. … Matching Principle. … Full Disclosure Principle. … Objectivity Principle.

What are the three golden rules of accounting?

Take a look at the three main rules of accounting:Debit the receiver and credit the giver.Debit what comes in and credit what goes out.Debit expenses and losses, credit income and gains.