Definitions - Credit is where there isn’t a certain...

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GAAP Basic accounting formula Transaction, t-account General ledger Debit Credit Account balance Trial balance Journal Assets Liabilities Net assets Accounts receivable Accounts payable Revenues GAAP- Is the Generally Accepted Accounting Principles. These are the Principles that help others inside accounting area of work. This is the Principle that makes sure that accountants know who is and isn’t accepted. Basic Accounting Formula- Basic Accounting Formula is the basics of accounting it is simple as that. Self-explanatory. Transaction, T- Account- Basically this is an account to organize your debit transactions and your credit tranactions. Left side and right side like a T. General Ledger- This is the company’s accounting records. This records the financial accounts and business accounts. Debit- Debit is more of a limit of what you have in your bank account if you don’t have a certain amount of money than you will not be able to take that amount out. Credit-
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Unformatted text preview: Credit is where there isn’t a certain amount and has interest where debit does not. Credit can be over drawn whereas debit is exact. Account Balance- This is a balance that your personal accounts holds. Transactions and other withdrawals and what has been spent from day to day and month to month. Trail Balance- A list of of all normal ledger accounts of a business. Journal- A record of everything held by the general ledger. Assets- Assets is something that is a useful or a valuable thing. Liabilities- Liabilities is a useful or valuable thing that can get you in trouble or debt. Net Assets- Total assets minus total liabilities from a business or personal records. Accounts Receivable- This is usually money that is owed to a business of a client. Accounts Payable- This is usually when a file or account sub ledger that a company that owes to suppliers that has not paid yet. Revenues- Revenue is income that a company receives from normal company activities....
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  • Spring '11
  • ShellyMcDowell
  • Generally Accepted Accounting Principles, bank account, basic accounting formula, Assets- Total assets

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Definitions - Credit is where there isn’t a certain...

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