Questions & Answer

The most important accounting terms


Some Accounting Terms

1. Calculation: It is a means of classifying and aggregating the parameters related to a particular item. It has two t-sides where the right side represents the debtor party and the left side represents the creditor.

2. General Journal: It is a historical record of all the operations of the establishment in the order of occurrence, and is recorded in accordance with the method of double-entry, it is necessary to equal the total of the debtor party with the creditor party to record each scientific, and called the operations recorded therein (restrictions journal).

3. General Ledger: It is the book that handles the operations related to the accounts included in the accounting system of the establishment. It contains all accounts of assets, liabilities, property rights, expenses and revenues.

4. Accounts Guide: A map of accounts used in the facility.

5. Double-entry method: This method requires that each financial transaction be recorded in two different parties, one of which is a debtor and the other a creditor, and in two (or more) different accounts.

6. Balance: is the difference between the sum of the debtor side and the total creditor side of each account, and depends on the nature of the accounts, balances of assets accounts, expenses and withdrawals always debit, and balances of the accounts of obligations and capital, and revenues always payable, and the process (balance) is intended to extract the balance.

7.Deportation: means the transfer of entries previously recorded in the general journal day-to-day and first-hand to the accounts of the general ledger.

8.Documents: It is the main source of record in accounting books, and it is considered as proof of the establishment of an operation, such as invoices, receipts, checks, bills of exchange, bank statement, electricity, telephone, fax and water bills and others.

9. Accounting cycle: The session on documents showing the establishment of a financial process in the various accounting books, starting with registration in the general journal, followed by posting directly to the general ledger, and then prepare the balance of audit, and the session ends with the preparation of financial statements.