This is a second part of this article that the accounting definitions, which form the basis of accounting, such as definitions of the key elements, processes and properties in the accounting analysis, synthesis and recording transactions will be applied, said business for the purpose of preparing the budget and accounting data to its users. To master the theory and practice of accounting, we need to understand these definitions, explained later in thisArticle.

Double-entry bookkeeping – a method of accounting, in which each operation is
Recorded in two separate accounts should be than once and once as a loan.

Equity – The net asset value after deducting total liabilities, ie equity firm owned by owners.

Financial Accounting – accounting, as a goal to date, the financial situation of a company outsider,Shareholders, the application of generally accepted accounting principles.

Budget – statements, the notes reflect financial data on the business, including three main types, namely the balance sheet, profit and loss account and cash flow statement presentation by supported.

Fixed Assets – Long-term assets such as real estate which is in more than one fiscal year.

General Ledger – aCollection of all accounts for purposes of accounting of the companies used.

Profit and loss statement – a statement of revenue and expenditure for a given period.

Journal – Records of transactions are maintained in chronological order, used to record the original transaction occurred.

Responsibility – money or other financial assets of these creditors are owed by third parties such as lenders to companies,Suppliers.

Net income or profit – the end result of the revenues, costs and taxes have been deducted under the income of, ie the amount by which total revenues exceeded total expenditures.

Nominal Account – temporary account that the revenue and expenditure shown, the income and the income summary account was closed on, ie, the retained earnings account.

Payroll – list of employees andtheir salaries and payments for the entire period and taxes.

Real Accounts – Auditors' liability and equity activities that the budget are included and not in the near term at the end of the financial year.

Revenue – Total earnings before expenses are subtracted, ie gross increase in equity for the period.

(Transaction) – event or condition thathas an impact on the financial situation of companies and must be included in the books.

Balance – a list of all accounts and their balances at the end of the period.

Remember, this list of definitions and accounting is not final, and if someone wants to compose an exhaustive list, it is quite long. However, the understanding of these important definitions would be sufficient to begin to understand what accounting is and how to address them.

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Accounting is a system of collecting, compiling, analyzing and reporting, in financial terms, information about an organization. The end product of the accounting software company has the budget is the balance sheet, profit and loss account and statement of changes in financial position. These statements are thus the source of information on the basis of the conclusions regarding the operations of a company can be drawn. The analysis and interpretationthe budget will depend on the type and nature of available information.

When it comes to accounting statement software company, which is an important financial statement of a company. In fact, it is called the accounting report crucial. Other terms to describe the financial statement information, financial situation or attitude. As the name suggests, the budget provides information on the financial situation / position in a companygiven time. It can be seen as a snapshot of the company's financial position. The company's financial position is valid for one day, the closing date. In a previous or next days, probably be different.

The company's financial position is not disclosed how the budget relates to its resources, obligations and interests of owners in the area. In operational terms, the budget contains information about the assets,Liabilities and equity. It can be presented in two forms are: the shape of the bill or report. Usually presented as accounts. Report in the form of an essay-step budget was prepared for, asset listings at the top, followed by liabilities and owners equity. The content of the budget, in whatever form presented, consisting of assets of the company and the medium from which they were funded, that is, debt and equity holders.

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