What Are Assets, Liabilities, and Equity?

Making a profit in business comes from several areas. This can get a little tricky because, just like in our personal life, businesses are also run on credit. Many companies sell their products to their customers on credit. Accountants use a balance sheet called credits to record the total amount …

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How Do Accounting Profit ?

Accountants are responsible for preparing three main types of financial statements for a company. The income statement reports the company’s profitable assets and funds profit or loss during a certain period. Financial statements report a company’s financial position at a specific time, often on the last day of the period. …

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Accounting & Personal Finance Basics

If you have a checking account, you obviously balance it periodically to account for the difference between what’s on your statement and what you write for checks and deposits. Many people do this once a month when they receive their statement in the mail, but with the advent of online …

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A Beginner’s Guide to Bookkeeping Basics

Most people might think of bookkeeping and bookkeeping as the same thing, but bookkeeping is actually one of the functions of accounting, while accounting includes many functions involved in managing a company’s financial affairs. Accountants prepare reports based, in part, on the accountant’s work. Accountants perform all kinds of record …

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Profit and Loss Statement (P&L) Definition

It may seem like there is no need to think long and hard to define exactly what profit and loss are. But of course this has a definition like any other. Profits can be called different things, for starters. It is sometimes called net income or net income. Companies that …

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Accounting Career Paths (Job Types, Opportunities)

There are many different careers in accounting ranging from entry-level accounting to the CFO of a company. To get a position with more responsibility and a higher salary, it is necessary to have a degree in accounting and achieve various professional designations. One of the major milestones in any accountant’s …

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What is Bookkeeping & why it is important?

So what happened to the accounting and accounting departments? What do these people do every day? Well, one thing they do that is really important to everyone who works there is payroll. All salaries and taxes earned and paid by each employee in each pay period must be recorded. The …

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Accounting Principles That Are Essentials to Understand

If everyone involved in the accounting process follows their own system, or none at all, there is no way to really know whether a business is profitable or not. Most companies follow what are called Generally Accepted Accounting Principles, or GAAP, and in libraries and bookstores there are large volumes …

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Basic Accounting Principles

Accounting was defined by the University of Michigan Accounting Professor William A Paton as having a fundamental function: “facilitating the administration of economic activity. This function has two closely related phases: 1) measuring and collecting economic data; and 2) communicate the results of this process to stakeholders. – interested party. …

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What Is Accounting Anyway?

Anyone who has worked in an office at one time or another should go into accounting. They are the people who pay and deliver the bills that keep the business going. Yet they did more than that. Sometimes referred to as a “nut counter” they also keep an eye on …

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