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A Short Guide to Financial, Accrual and Accounting Terms

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Financial accounting is a record of collecting data, preparation of financial statements as well as analysis of it. It is represented in income statement or a balance sheet. It follows some rules such as Accounting Standards as well as Generally Accepted Accounting Principles (Gaap). <a href="http://www.accountingsoftwarereviews.net/">Financial accounting</a> is essential for any business firm. It helps to estimate the gross profit or loss at the end of the year. It helps for the assessment of a company by others. It presents a clear image of the present position of a company. <br><br> <a href="http://www.accountingsoftwarereviews.net/">Accrual accounting</a> is a method of accounting that helps to evaluate the position and the performance of a company. This is done by the measurement of the economic activities even through the occurrence of cash transactions. It shows how to measure the revenues as well as the expenses taken place. It balances between the cash inflow and cash outflow, thus maintaining a balance between the two and presents a clear image of the company. <br><br> <b>Accounting Terms includes the following; </b> <br><br> * Banking terms (debit, credit, stop order, ACB transfer etc) <br><br> * Economic terms (inflation, break-even point etc) <br><br> * Legal terms (sequestrate, suretyship) <br><br> * Investing and finance terms (securities etc) <br><br> * Tax terms (deduction, withholding tax, taxable income) <br><br> * Often misunderstood business terms. (Hire-purchase, remittance, liquidity etc.) <br><br> The terms and the technique should be clear with an accountant, often mistakes lead to major problems. To know more about and to be thorough with the techniques, log on to <a href="http://www.accountingsoftwarereviews.net/">http://www.AccountingSoftwareReviews.net</a>

 

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