1. What is accounting?
2. What is meant by book keeping?
3. What is a journal?
4. What is meant by ledger?
5. What is a cash book?
6. What do you mean by petty cash book?
7. What is meant by opening stock?
8. What is balance sheet?
9. What is meant by prepaid expenses?
10. What is depreciation?
Answers
Answer:
1) Accounting is the process of recording financial transactions pertaining to a business.
2) Bookkeeping involves the recording, on a regular basis, of a company's financial transactions.
3) A journal is a detailed account that records all the financial transactions of a business
4) A ledger is a book containing accounts in which the classified and summarized information from the journals is posted as debits and credits.
5) A cash book is a financial newspaper which includes all cash receipts and disbursements, including bank deposits and withdrawals.
6) The petty cash book is a recordation of petty cash expenditures, sorted by date.
7) Opening Stock is the amount and value of materials that a company has available for sale or use at the beginning of an accounting period.
8) Balance Sheet is the financial statement of a company which includes assets, liabilities, equity capital, total debt, etc. at a point in time.
9) Prepaid expenses are future expenses that are paid in advance. On the balance sheet, prepaid expenses are first recorded as an asset.
10) The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. Machinery, equipment, currency are some examples
Explanation:
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Answer:
1.Accounting is the process of recording financial transactions pertaining to a business. ... The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position and cash flows.
2.Bookkeeping involves the recording, on a regular basis, of a company's financial transactions. ... Simply put, business entities rely on accurate and reliable bookkeeping for both internal and external users.
3.A journal entry is the act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company's debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
4.A ledger is a book containing accounts in which the classified and summarized information from the journals is posted as debits and credits. ... The ledger contains the information that is required to prepare financial statements. It includes accounts for assets, liabilities, owners' equity, revenues and expenses.
5.A cash book is a financial newspaper which includes all cash receipts and disbursements, including bank deposits and withdrawals. After that, entries in the cash book are added to the general ledger.
6.The petty cash book is a recordation of petty cash expenditures, sorted by date. In most cases, the petty cash book is an actual ledger book, rather than a computer record. ... This format is an excellent way to monitor the current amount of petty cash remaining on hand.
7.Opening Stock is the amount and value of materials that a company has available for sale or use at the beginning of an accounting period. The closing Stock of the previous accounting period becomes the opening Stock of the current accounting period.
8.In financial accounting, a balance sheet is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization such as government or not-for-profit entity.
9.A prepaid expense is a type of asset on the balance sheet that results from a business making advanced payments for goods or services to be received in the future. Prepaid expenses are initially recorded as assets, but their value is expensed over time onto the income statement.
10.In accountancy, depreciation refers to two aspects of the same concept: first, the actual decrease of fair value of an asset, such as the decrease in value of factory equipment each year as it is used .