Accounting Basics Flashcards
Process of recording financial transactions pertaining to a business
Accounting
Accounting process includes
Analyzing, Recording & Summarizing
Father of Accounting
Luca Bartolomeo De Pacioli
A/R
Accounts Receivable
A/P
Accounts Payable
Incoming Money
Debit
Outgoing Money
Credit
Summary of Debits And Credits
Trial Balance
Accounting Period January - December
Calendar Year
Accounting Period can start at any month of the year
Fiscal Year
Accounting Title money in bank
Cash in bank
Accounting Title money on hand
Cash on hand
Accounting Equation
Asset = Liability + owner’s equitys
To record the initial Capital
Paid up Capital
2 types of accounts
Real Accounts
Nominal Accounts
It track revenue and expenses for a specific period.
Nominal Account
It tracks a company’s assets, liabilities, and equity over its entire lifetime.
Real Account
