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 - 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 - Transaction T account – A term used for double entry book keeping, a ledger with 2 separate lines separating debits and credits - Debit – A subtraction from an account, when you purchase something it should be deducted from your account. Credit – When an addition is added to your ledger or account. •Account balance the amount of money in your account or in your ledger at any time is the account balance •Trial balance this ensures that all credits and debits have been added to your account •Journal a book or spreadsheet in which all your activities are on sales receipts, debits, credits etc. •Assets the resources owned by an individual or business •Liabilities – Funds owed to someone, liabilities often have the word paid next to it •Net assets the total amount of assets subtracting the liabilities. •Accounts receivable- money that is owed by an individual or company for services already rendered however have not been paid for yet. •Accounts payable somewhat the same as a liability paying off a debt....
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Apple GAAP Essay
  • Essay about Globalization: Gaap vs. Ifrs
  • Revenue Recognition Ifrs vs Gaap Essay
  • Difference of Costing Methods Between Gaap and Ifrs Essay
  • IFRS vs. GAAP standards Essay
  • U.S Gaap to Ifrs Essay
  • Convergence of Ifrs and Us Gaap Essay
  • Essay on Gaap

Become a StudyMode Member

Sign Up - It's Free