Accounting
Gross Pay: is the pay an
employee recieves before
any deductions
History
Transactions were recorded with pen and paper, now at days on digital records
Evidence of accounting from back 10,000 years has been found in the Babylonian Empire, in the Pharoah's Egypt and in Ancient China
Liability: the amount owned
Revenue: is an increase in
owners equily and assets due
to business operations
Owners Equity: the rest to
the assets of company
is the planning, recording,
analyzing and interpreting
of financial information.
Normal Balance: the side of a
T account that shows increase
Aditional
Information
The increase in assets equal debits
Sales account is owner's equity
Cash recieved is an asset, increase in assets are recorded as debits
Accounting Recivable: are accounts
which contain amounts for which a
costumer has been involved but not
paid
Assets: anything owned by
the company that has value
Equities: financial right
to the assets of a company
Types of Business
Partnership: small groups of owners, two or more
Sole Proriertorship: single owner
Corporation: many owners