basic accounting terms

1
What is Financial Accounting ?

• Financial accounting is the art or science of
  recording, classifying and summarizing the
  business transaction in significant manner and
  interpreting the result and preparation of
  Financial reports.

2
Basic Accounting Terms
3
The following is the list of Basic accounting
terms which I explain briefly to help accounting
beginners.
4
Account It is device, which contains a
systematic record of increase or decrease in an
item during a certain particular period of
time. Account Receivable /Debtor A person to
who goods are sold on credit by a business
organization is called account receivable or
debtor. Account Payable / Creditor A person from
whom a business organization or individual
purchases goods on credit is called creditor.
5
Assets The basic accounting terms Assets means
anything valuable possessed by a firm with the
following three features 1. qualifies as
assets. 2. The legal title of ownership 3. Right
to use Right to sale/dispose off
6
BookkeeperA trained and qualified person who
collects, records and report on the financial
transactions carried out by a business is called
Bookkeeper. Note there is a difference between
bookkeeper and Accountant we explained in another
separate topic Accountant Vs Bookkeeper
7
Summary

• For more Explanation, where I put complete basic
  accounting terms dictionary you can visit
  commercepk.com/basic-accounting terms