IMPORTANT ACCOUNTING TERMS AND CONCEPTS

IMPORTANT ACCOUNTING TERMS AND CONCEPTS

Profit making organisations are known as businesses. There are three main types of businesses; those selling services (such as dry cleaners, Motor workshops. Beauty salons, airlines etc.); those selling foods (such as food sellers, automobile dealers etc.); those manufacturing goods (such as automobile manufacturers, fans industries, sugar mills etc.).

A business entity is an economic unit, which enters into business transactions that must be recorded, summarised and repotted. The entity (organisation) is regarded as separate from its owner oc owners; the entity owns its own property and has its own debts. The purpose of accounting is to provide weful information about an organisation (an entity) to peofle who need such information but not about the personal affairs of me owner or owners. So it should be remembered that accounting is done for business activities (what is happening in the business organisation) and it is not concerned with the personal or private matters of the owner. For example, the owner purchases furniture for business use(this is a business activity and it should be recorded in books of accounts. But if he purchases furniture for his domestic use, it wilt not be considered as a business activity and will not be recorded in books of accounts. In the same •ay, the owner may have a personal bank account, a car, a house, and other property, but since these things are not a pan of the business, they are not included in the record of the business unit So, each organisation lor which accounting is done is an independent entity, separate from its owners, managers, customers, creditors, and all other persons and entities with which it deals.

property accounting

accounting companies

accounting class

accounting asset

fixed assets accounting

web accounting

sales tax accounting

amortization accounting

investment accounting

accounting assets

accounting accrual

subsidiary account

fasb accounting

nation bank

laywer bank

accounting Law

accounting questions

accounting balance sheet

final Account