Explanation Of Accounting Terms Based On Accounting

To learn accounting, we must first understand the various nouns of accounting and lay the foundation for accounting. Here we summarize some basic nouns and their explanations, hoping to facilitate your study.

1., accounting reflects the function: accounting refers to the recognition, measurement, recording, reporting, quantity reflects the business and administrative institutions have occurred or completed economic activities, for the operation and management to provide economic information function.

2., the supervision function of Accountants is that accountants have certain purposes and requirements, and make use of the economic information provided by accountants to control the economic activities of enterprises and administrative institutions so as to achieve the desired goal.

The 3. accounting is: accounting for money is the main unit of measurement, and specialized methods and procedures are used to carry out a complete, continuous, systematic reflection and supervision of the economic activities of enterprises and administrative organs and institutions. A management activity aimed at providing economic information and improving economic efficiency is an important part of economic management.

4., the basic premise of accounting (or accounting assumption) is to define the scope, contents, basic procedures and methods of accounting in order to ensure the normal operation of accounting and the quality of accounting information, and to establish accounting principles on this basis.

5. continuous operation: it means that accounting should be based on continuous and normal production and operation activities without considering whether the enterprise will go bankrupt or liquidate.

6. monetary measurement: the production and operation activities of enterprises and the results of operations, or the economic activities of other units are comprehensively reflected through monetary measurement. Other units of measurement should also be used, but they do not occupy a dominant position.

7. usefulness principle: also called relevance principle, refers to the economic information provided by accounting should help users make economic decisions, and the information provided by accounting should be related to decision making.

The 8. principle of consistency is that the methods and procedures for handling accounting business in various enterprises and administrative institutions should be consistent in different accounting periods and can not be changed arbitrarily, so as to facilitate longitudinal comparison of accounting data in the period before and after.

9. matching principle: it refers to the comparison between the income of an accounting period and the costs and expenses associated with it, so that it can be registered in the same accounting period so as to calculate the profits and losses of the current period.

10. accrual basis principle: it refers to whether the enterprise should confirm the entry time of income and expense according to the right of income and the obligation of expenditure.

11. assets: an economic resource owned or controlled by an enterprise, which can be measured in money and can provide future economic benefits for the enterprise.

12. liabilities: liabilities that enterprises undertake to measure in money and assets or services to repay.

13. owners' equity is the ownership of enterprise's net assets by investors.

14. income: a company's cash flow (or equivalent) that occurs or is about to happen because of selling goods, providing services and providing other people with the assets of the enterprise.

Liquidation.

The 15. fee: the expenses that are recognized by the matching method for the purpose of obtaining income.

This definition refers to the narrow cost, which is limited to the cost of assets related to the provision of goods and services, that is, operating expenses.

The generalized cost includes investment loss, extra business expenses and income tax expenses.

Sixteen

It is a project that further classifies the specific contents of accounting objects, that is, accounting elements.

17. account: a tool for classifying accounting elements. It should take accounting as its name and have certain format.

18. double entry bookkeeping: accounting for every economic paction occurring in equal or equal amounts in two or more than two accounts.

19. simple accounting entry: a

An accounting entry that corresponds only to the credit of another account, that is, an entry of one loan.

20. compound accounting entry: refers to an account entry which corresponds to the credit of several accounts, or vice versa, where an account credit corresponds to a number of debit borrowers, that is, an accounting entry that borrows more than one loan or borrows more than one loan.