ACCOUNTING

What is the accounting equation?

ADE=LCR

Credit are what nature ?

Right

Debit are what nature?

Left

What accounts do we close on closing eateries?

R,E,D

Order of accounting cycle?

Identify transaction

Analyse transaction

Journalise

Trial balance

Adjusting eateries

Financial statements

Closing enteries

If an asset decreases which account is it?

Credit opposite to its nature

What is an asset?

Something that provides benefit in the near future

ADE which account?

Debit

LCR which account?

Credit

Income statement

Revenue-expenses=net profit

Merchandising company classification

Inventory

Manufacturing companies classification

Raw material

Work in progress

Finished goods

Perpetual system

Determines amount of inventory lost due to wasted raw materials, shoplifting or employee theft

What is FIFO

First in, First out

Account for for item sold then an avg unit is calculated and applied to all units sold