# data[].attributes.body
Business Entity Concept
- Accounting for the owner's personal affairs and accounting for the business is kept separate.

Continuing Concern Concept
- Assumes that a business will continue to operate unless it is known that it will not

Cost Principle Concept
- ASPE requires accountants to record the value of assets at their historical cost price and not at market value

Revaluation Model
- Under IFRS, accountants can change the value of particular assets based on market conditions; market value

# data[].attributes.body
-Service Business

E.g. hair salon, dental clinic, recording studio

-Merchandising Business

E.g. clothing store, computer store, supermarket

-Manufacturing/Producing Business

E.g. Automaker, paper mill, steel plant/farm, oil extraction

-Non-Profit Organization

E.g. Red Cross, The Salvation Army, United Way

# data[].attributes.body
Assets, Expenses, and Drawings are debited. Liabilities, Revenue and Capital are credited.

# data[].attributes.body
Balance sheet
- a "snapshot" of the business at one point in time

Income Statement
- shows the performance of a business over a period of time

Cashflow
- shows how much money is coming into the business and how much is leaving

# data[].attributes.body
The process of from the journal to the ledger

# data[].attributes.body
The big 4 are KPMG, PwC, Deloitte and Ernst and Young

# data[].attributes.body
The bu

# data[].attributes.headline
It is the fundimental soruce of earning da money

# data[].attributes.subject
It is the fundimental soruce of earning da money

# data[].attributes.body
1. Income Statement - Profits or Losses

2. Statement of Owner’s Equity

1. net profit=owner’s equity increases, net loss=owner’s equity decreases

3. Balance Sheet - =Assets=Liabilities+OE

4. Cash Flow Statement

# data[].attributes.body
Balance Sheet
Income Statment
Statment of owners equity
cash flow statment

# data[].attributes.body
An examination of accounting records in order to express an opinion about the financial state of a business

# data[].attributes.body
Trial balance contains assests and liabilities

# data[].attributes.body
Debit to the right/ credit to the left

# data[].attributes.body
This is the accounting equation and it should always be balanced because any money generated to buy assets comes from the liabilities (taking a loan) or owner's equity(the owner's own pocket).

# data[].attributes.body
Sho

# data[].attributes.body
How fast an asset can be converted into cash

# data[].attributes.body
When the books of the company and the books of the bank don't match or missing a transaction

# data[].attributes.body
A Service business sells its services rather than actual products to generate revenue

# data[].attributes.body
Purchase on account - purchased on credit A/P

Sold on account - an item is sold on credit A/R

Paid on account - paid money to a creditor to reduce the amount owed

Received on account - received money from a debtor to reduce payment

# data[].attributes.body
Accounting is important because it helps external users understand financial information about a business. This helps with creating important decisions.

# data[].attributes.body
Accounting is important because it tracks the income and all expenses in a business. This information collected can be used for making business decisions.

# data[].attributes.body
Debits on the left credits on the right :)

# data[].attributes.body
Assets= Liabilities + Owners Equity

# data[].attributes.body
1. Financial transaction occurs.
2. Record transaction in journal.
3. Journal entries are posted to ledger accounts.
4. Trial balance and interim financial accounts are prepared.
5. Worksheet is prepared.
6. Formal financial statements are prepared.
7. Ledger accounts are adjusted and closed.
8. Post-closing trial balance is prepared.
... Cycle begins again.

# data[].attributes.body
Is the process of recording and analyzing business transactions in addition to gathering financial information.

# data[].attributes.headline
Income Statement shows the debit and credit of a business

# data[].attributes.subject
Income Statement shows the debit and credit of a business

# data[].attributes.body
Income Summary is a temporary account used to spread the net income for the fiscal period across expense and capital accounts.

# data[].attributes.body
Is a snapshot of a business in a certain moment in time.

# data[].attributes.body
....it ensures that the business is operating legally.

# data[].attributes.body
Accounting is the recording, analyzing, posting, and etc... of financial statements and/or transactions

# data[].attributes.body
Accounting is

# data[].attributes.headline
What is the accounting equation? Explain its significance. Why should it always balance?

# data[].attributes.subject
What is the accounting equation? Explain its significance. Why should it always balance?

# data[].attributes.headline
What are the 4 components of owner's equity?

# data[].attributes.subject
What are the 4 components of owner's equity?

# data[].attributes.body
Revenue, Expenses, Drawings, Capital

# data[].attributes.headline
Accounting is the process of identifying financial transactions, recording the same and communicating/ interpreting the economic event and take decisions based on this financial information.  

# data[].attributes.subject
Accounting is the process of identifying financial transactions, recording the same and communicating/ interpreting the economic event and take decisions based on this financial information.  