Студопедия

КАТЕГОРИИ:

АвтомобилиАстрономияБиологияГеографияДом и садДругие языкиДругоеИнформатикаИсторияКультураЛитератураЛогикаМатематикаМедицинаМеталлургияМеханикаОбразованиеОхрана трудаПедагогикаПолитикаПравоПсихологияРелигияРиторикаСоциологияСпортСтроительствоТехнологияТуризмФизикаФилософияФинансыХимияЧерчениеЭкологияЭкономикаЭлектроника



Reading. The double entry bookkeeping method is the most widely used bookkeeping method

Читайте также:
  1. A. Do pre-reading tasks before each abstract, then read and translate the abstracts about the basics of management.
  2. Act out a teacher-class session giving them a few tips on reading techniques.
  3. B. Predict the answers to the questions before reading
  4. Consult the TEXTS FOR SUPPLEMENTARY READING and complete the information about ecology as a science (Texts 20, 21). Be ready to discuss the information you have read.
  5. Consult the TEXTS FOR SUPPLEMENTARY READING and complete the information about electricity (Texts 34, 35, 36, 37). Be ready to discuss the information you have read.
  6. Consult the TEXTS FOR SUPPLEMENTARY READING and complete the information about the application of computers (Text 29, 30, 31). Be ready to discuss the information you have read.
  7. Consult the TEXTS FOR SUPPLEMENTARY READING and complete the information about the history of oil extraction (Text 42). Be ready to discuss the information you have read.
  8. Consult the TEXTS FOR SUPPLEMENTARY READING and learn about early attempts to find or get clean water (Text 47). Be ready to discuss the information you have read.
  9. Consult the TEXTS FOR SUPPLEMENTARY READING and learn about the advent of municipal water treatment (Text 48). Be ready to discuss the information you have read.
  10. Exercise 2 Read and explain the reading rules.

The double entry bookkeeping method is the most widely used bookkeeping method. It is a standard accounting method that involves each transaction being recorded in at least two accounts, resulting in a debit to one or more accounts and a credit to one or more accounts. Double entry accounting provides a method for quickly checking accuracy because the sum of all accounts with debit balances should equal the sum of all credit balance accounts.

The best accounting software for business uses double entry accounting; without that feature an accountant will have difficulty preparing year end and tax records.

In the double-entry accounting method every journal entry transaction is recorded in the journal once, but affects two different accounts (using a Chart of Accounts):

- The first entry shows a change on the assets side - the debit entry.

- The second entry shows a change on the equities side - the credit entry.

The double-entry method can be very confusing at first but when entries are properly recorded the account books will balance because the total of all credit entries will be equal to the total of debit entries.

The double-entry accounting method is used by most businesses throughout the world. However, some businesses that have strictly cash transactions may use the single entry bookkeeping method instead.

Accounting methods refer to the basic rules and guidelines under which businesses keep their financial records and prepare their financial reports. There are two main accounting methods used for record-keeping: the cash basis and the accrual basis.

Accounting records prepared using the cash basis recognize income and expenses according to real-time cash flow. Income is recorded upon receipt of funds, rather than based upon when it is actually earned, and expenses are recorded as they are paid, rather than as they are actually incurred.

In contrast, the accrual basis makes a greater effort to recognize income and expenses in the period to which they apply, regardless of whether or not money has changed hands. Under this system, revenue is recorded when it is earned, rather than when payment is received, and expenses recorded when they are incurred, rather than when payment is made. So it is an accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. This method allows the current cash inflows/outflows to be combined with future expected cash inflows/outflows to give a more accurate picture of a company's current financial condition.



 

 


Дата добавления: 2014-11-13; просмотров: 7; Нарушение авторских прав


<== предыдущая лекция | следующая лекция ==>
Comprehension. 1. Are the following statements true or false? | Reading. Governments finance most of their expenditure by taxation
lektsii.com - Лекции.Ком - 2014-2019 год. (0.022 сек.) Все материалы представленные на сайте исключительно с целью ознакомления читателями и не преследуют коммерческих целей или нарушение авторских прав
Главная страница Случайная страница Контакты