What are the topics in accounting?
General Accounting Topics and TrainingAccount codes.Balance Sheet Reconciliations.Bank wires, receiving.Chart of Accounts (COA)Correcting journals without index numbers.Credit and debit card processing.Endowment.Equipment management.
What are the 3 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.
What is the first rule of accounting?
The following are the rules of debit and credit which guide the system of accounts, they are known as the Golden Rules of accountancy: First: Debit what comes in, Credit what goes out. Second: Debit all expenses and losses, Credit all incomes and gains. Third: Debit the receiver, Credit the giver.
What type of bank accounts should I have?
Everyone needs at least one checking account and should consider one savings account too. Couples often maintain a joint checking and savings account for the family’s finances — mortgage payments on one hand, and the emergency fund on the other — while maintaining a separate checking account for personal expenses.
What are the 5 basic accounting principles?
These five basic principles form the foundation of modern accounting practices….5 Important Principles of Modern AccountingThe Revenue Principle. The Expense Principle. The Matching Principle. The Cost Principle. The Objectivity Principle.
What are the 4 principles of GAAP?
The four basic constraints associated with GAAP include objectivity, materiality, consistency and prudence. Objectivity includes issues such as auditor independence and that information is verifiable.
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.
What are the 3 steps of accounting?
The accounting process is three separate types of transactions used to record business transactions in the accounting records….The steps are:Prepare trial balance. Adjust the trial balance. Prepare adjusted trial balance. Prepare financial statements. Close the period.
What is basic accounting skills?
An accountant should know how to prepare financial statements and accounting reports for planning, controlling, budgeting and decision-making. The three key financial statements are balance sheet, profit & loss and cash flows account. These above three financial statements are interlinked with each other.
What are the steps of accounting?
The eight steps to the accounting cycle include the following:Step 1: Identify Transactions. Step 2: Record Transactions in a Journal. Step 3: Posting. Step 4: Unadjusted Trial Balance. Step 5: Worksheet. Step 6: Adjusting Journal Entries. Step 7: Financial Statements. Step 8: Closing the Books.
What are the 5 main activities involved in accounting?
Organization of the Accounting Cycle around the Chart of Accounts and the Accounting Period. Defining the accounting cycle with steps: (1) Financial transactions, (2)Journal entries, (3) Posting to the Ledger, (4) Trial Balance Period, and (5) Reporting Period with Financial Reporting and Auditing.
What is the 4 phases of accounting?
THE FOUR PHASES OF ACCOUNTING Accounting has four phases, namely Recording , Classifying , Summarizing , and Interpreting . Recording – This is technically called bookkeeping. In this phase, business transactions are recorded thematically and chronologically in the proper accounting books.
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 are the 7 business activities?
Some fundamental operating activities for a business are sales, customer service, administration and marketing….Keeping this in mind, there are six types of activities that all businesses have to undertake at some point or the other.Sales. Marketing. Finance. Accounting. Customer Service. Human Resources.
What three activities must a business perform in order to be successful?
For a business to be successful, it must (1) be organized; (2) make a profit on the goods or services it sells to its customers; and (3) meet the needs of its customers. If one or more of the three elements is missing, the business will not be a success.