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FIVE TERMS RELATED TO ABM STRAND
ACCOUNTING – is the systematic and comprehensive recording of financial transactions pertaining to a business, and it also refers to the process of summarizing, analyzing and reporting theses transactions to oversight agencies and tax collection entities.
Ex. Accounting rules require companies to write off goodwill against their earnings.
ACCOUNTING CYCLE – is the name given to the collective process of recording and processing the accounting events of a company.
Ex. The first step in the accounting cycle is analysis of transactions and selected other events.
ACCOUNTANT – person skilled in the recording and reporting of financial transactions.
Ex. If you find a good investment property, then talk to an accountant about tax implications.
BOOKKEEPING – is the process of recording financial transactions and keeping financial records.
Ex. Bookkeeping is the process of documenting bank statements each month.
CASH – ASSET account on a balance sheet representing paper currency and coins, negotiable money orders and check, bank balances and certain short-term government securities.
Ex. She rarely carried much cash and only one credit card.
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