Gaap

Topics: Double-entry bookkeeping system, Generally Accepted Accounting Principles, Bookkeeping Pages: 1 (335 words) Published: July 10, 2013
GAAP – This is the General Accepted Accounting Principles, it is the basic principles of accounting - http://www.investopedia.com/terms/g/gaap.asp Basic Accounting Formula- means that all balances and ledgers must match at all times. If it does not then something was entered wrong in a ledger -http://www.accountingtools.com/basic-accounting-formula Transaction T account – A term used for double entry book keeping, a ledger with 2 separate lines separating debits and credits -http://www.investopedia.com/terms/t/t-account.asp Debit – A subtraction from an account, when you purchase something it should be deducted from your account. http://www.investopedia.com/terms/d/debit.asp Credit – When an addition is added to your ledger or account. http://blog.accountingcoach.com/what-is-a-credit/ •Account balance the amount of money in your account or in your ledger at any time is the account balance http://www.investopedia.com/terms/a/accountbalance.asp •Trial balance this ensures that all credits and debits have been added to your account http://accounting-simplified.com/trial-balance.html •Journal a book or spreadsheet in which all your activities are on sales receipts, debits, credits etc. http://womeninbusiness.about.com/od/glossaryofaccountingterm/g/definition-journal.htm •Assets the resources owned by an individual or business http://accountingexplained.com/financial/introduction/asset •Liabilities – Funds owed to someone, liabilities often have the word paid next to it http://www.accountingcoach.com/terms/L/liabilities.html •Net assets the total amount of assets subtracting the liabilities. http://blog.accountingcoach.com/meaning-of-net-assets/ •Accounts receivable- money that is owed by an individual or company for services already rendered however have not been paid for yet. http://www.investopedia.com/terms/a/accountsreceivable.asp •Accounts payable somewhat the same as a liability paying off a debt....
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