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  • 5 Major Accounts of Accounting

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    Anonymous P1iMib
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    The document discusses 5 major accounts of accounting: assets, liabilities, equity, revenue, and expenses. It then provides a brief summary of what was learned in a summer class about accounting, mentioning accounts receivable, bank accounts, furniture and equipment, inventory, PayPal, accounts payable, bank loans, car loans, credit cards, shareholder equity, net income, dividends, cafe sales, catering sales, interest income, advertising, bank fees, cost of goods sold, and office supplies.

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    Accounting major accounts

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    The document discusses 5 major accounts of accounting: assets, liabilities, equity, revenue, and expenses. It then provides a brief summary of what was learned in a summer class about accounting, mentioning accounts receivable, bank accounts, furniture and equipment, inventory, PayPal, accounts payable, bank loans, car loans, credit cards, shareholder equity, net income, dividends, cafe sales, catering sales, interest income, advertising, bank fees, cost of goods sold, and office supplies.

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    © All Rights Reserved
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    3K vues2 pages

    5 Major Accounts of Accounting

    Transféré par

    Anonymous P1iMib
    The document discusses 5 major accounts of accounting: assets, liabilities, equity, revenue, and expenses. It then provides a brief summary of what was learned in a summer class about accounting, mentioning accounts receivable, bank accounts, furniture and equipment, inventory, PayPal, accounts payable, bank loans, car loans, credit cards, shareholder equity, net income, dividends, cafe sales, catering sales, interest income, advertising, bank fees, cost of goods sold, and office supplies.

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme DOCX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 2

    5 Major Accounts of Accounting

    Assets - For assets, we have accounts receivable , bank, furniture &


    equipment, inventory, PayPal, and undeposited funds.
    Liabilities - For liability accounts we have accounts payable, bank loan, car
    loan, credit card, and money thats due to shareholders.
    Equity - Equity includes accounts like net income, dividends, and owners
    equity.
    Revenue - Revenue includes accounts like cafe sales, catering sales and
    interest income.
    Expenses - Expense includes accounts like advertising, bank fees, cost of
    goods sold, and office supplies.

    What Ive learned this week?


    I Didnt really learned that much because I just attend two days of my
    summer class but I did learn about Accounting little bit because I researched
    about it in the internet later that day when I first attend my summer class.

    5 essential Functions of accounting


    Recording : This is the basic function of accounting. It is essentially concerned
    with not only ensuring that all business transactions of financial character are in fact
    recorded but also that they are recorded in an orderly manner. Recording is done in
    the book Journal.

    Classifying: Classification is concerned with the systematic analysis of the


    recorded data, with a view to group transactions or entries of one nature at one
    place. The work of classification is done in the book termed as Ledger.

    Summarizing: This involves presenting the classified data in a manner which is


    understandable and useful to the internal as well as external end-users of
    accounting statements. This process leads to the preparation of the following
    statements: (1) Trial Balance, (2) Income statement (3) Balance sheet.

    Analysis and Interprets: This is the final function of accounting. The recorded
    financial data is analyzed and interpreted in a manner that the end-users can make
    a meaningful judgment about the financial condition and profitability of the business
    operations. The data is also used for preparing the future plan and framing of
    policies for executing such plans.

    Communicate: The accounting information after being meaningfully analyzed


    and interpreted has to be communicated in a proper form and manner to the proper
    person. This is done through preparation and distribution of accounting reports,
    which include besides the usual income statement and the balance sheet, additional
    information in the form of accounting ratios, graphs, diagrams, funds flow
    statements etc.

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