Accounting Terminology For Corporation

Accounting Terminology For Corporacion Accounting
participantes:
Marvin Fernández Jairo Lemus
Alondra Castellanos Brenda Juárez
Alejandra García.
Account
An account is a basic summary device used in accounting. All transactions related
to a particular account are recorded in that account. For example, all transactions
involving cash would be recorded in the cash account. Accounts are grouped into
five broad categories including assets, liabilities, equity, income and expenses.
Later we learn how financial data goes from journal to account.
Debit= Left side
Credit= Right side
Debits and credits are the way in which different accounts are increased or
decreased, but they do not mean increase or decrease. Because it depends on which
account the effect occurs in, each transaction must affect two or more accounts to
maintain the balance of the accounting equation. This is known as double entry,
therefore, each transaction must include at least two accounts, one account that is
dead and one that is accredited.
There can be more than two accounts, but there should never be less and the debits
must always be equal to the credits. And the debits must always be equal to the
credits or the accounting equation would be unbalanced.
Double Entry Accounting
Account balances are debit balances or credit balances, there are no negative
balances in accounting, balances are calculated by adding the debit side of an
account and adding the credit side of the account. Then we subtract the largest
side, this is the balance on the largest side, an account can only have one
balance, the debits are 20,000 and the credits are 9,000, therefore, the balance in
this account is 11,000
following example the debits are 15,000 and the credits are 17,000
So the balance of this account is a credit balance of $2000
Balances
The general ledger, sometimes known as the general ledger, is a collection of all
the accounts of the company therefore all accounts for assets, liabilities, equity,
income and expenses are found in the general ledger Before ending this short video
Regarding accounting terms, I would like to review some terms and define the
accounts a little better. Assets are economic resources, which means that they are
something of value, that they are owned or controlled by a company and that they
will provide benefits in the future. key when trying to determine if something is
an asset is that the assets will provide
Ledger
future benefits Supplies are an asset because we haven't used them yet. When we do,
they will become an expense, supplies expenses to be exact. And they will become a
past benefit and no longer a future benefit
Accounts receivable is for money our customers owe us If we perform a service on
account, we would use accounts receivable to record that transaction Prepaid
expenses are like supplies, they will become a past benefit, but until they do are
an asset Liabilities are claims on our assets from outside parties such as
creditors Accounts payable are money we owe our vendors or suppliers Accrued
liabilities, sometimes called accrued expenses, are amounts we owe for our invoices
related to our operations, for example, utility bills
Public debts received but not paid are a type of accumulated liability
Equity
Equity is the claim on the assets of internal parties such as owners. It is
sometimes called equity or net assets because it is the value of the assets that
remains after our liabilities are settled or liquidated. You can see that the
accounting equation can be manipulated. so that assets minus liabilities are equal
to capital, equity or net assets
Retained earnings is the amount of earnings that the company has retained instead
of paying out to shareholders in the form of dividends. Dividends are the amount of
earnings that the company has paid out to shareholders as a return on investment.
Income is income from operations, it is the profit that a company receives from its
business operations, remember that they increase equity, but technically they are
not equity accounts, service income is obtained by performing the service, sales
income is obtained by selling goods.
Expenses are outputs from operations. They are the costs that companies incur for
their commercial operations. The cost of goods sold account is not obviously an
expense account.
Revenue
Expenses are outputs from operations They are the costs that companies incur for
their commercial operations. The cost of goods sold account is not obviously an
expense account. Expenses are outputs from operations. They are the costs incurred
by companies. companies due to their commercial operations the cost of goods sold
account is not obviously an expense account
Selling Expenses
For retailers and manufacturers, it is often their biggest expense. It's titled
Exactly What It Means is Cost of Goods Sold and that concludes this short video
featuring some fundamental accounting terms and a deeper look at some specific
accounts.

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Accounting Terminology For Corporacion Accounting

Double Entry Accounting

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