Accounting Basics

What is the system of accounting that all US businesses use?

• GDP

• GAPP

• GAAP

• General Journal

Documents that summarize your businesses finances...

• financial reports

• journals

• ledgers

• income statements

A block of time covered by an accounting report

• fiscal year

• calendar year

• financial period

• accounting period

This runs from Jan 1 to Dec 31

• accounting period

• calendar year

• Chinese calendar

• fiscal year

An accounting period that runs from Oct 1 - Sept 31

• Chinese year

• calendar year

• fiscal year

• seasonal year

Anything of value that a business owns

• investments

• capital

• liabilities

• assets

The amount that customers OWE your business is in this

• accounts payable

• accounts receivable

• credit accounts

• debit accounts

Examples of these could include buildings or equipment

• fixed assets

• investments

• current assets

• purchases

Cash or other items that can be converted into cast quickly

• fixed assets

• cash assets

• quick assets

• current assets

The debts of a business

• assets

• debts

• liabilities

• equity