Essential Accounting Terminology and Definitions
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Essential Accounting Terminology
Core Concepts
- Accounting: Practice, activity, action.
- Accountancy: Theory, technique.
- Accountant: Person, profession.
- Account: Record, ledger, report, put the $ on.
Key Roles and Statements
Roles
- CFO: Chief Financial Officer.
- Accountant
- Bookkeeper
Financial Statements
- Balance Sheet: Financial statement showing the financial situation of the company.
- Profit & Loss Statement: Financial statement to show the profit earned or losses incurred in a determinate period.
Debits, Credits, and Balances
- DEBIT: When you move the $ out.
- CREDIT: Transfer the $ to another account.
- To Debit Account: To take $ out of account.
Assets and Liabilities
Assets
- Assets: Any property owned by a person or firm.
- Intangible Asset: Asset that you cannot touch (e.g., LEG - *assuming this was meant to be an example like Legal Rights or similar, kept as is*).
Liabilities
- Liabilities: Business obligations incurred but not discharged and entered as claims on the assets shown on the balance sheet.
- Accounts Payable: Debt that the company owes to clients. (Also: A current liability account showing amounts payable by a firm to suppliers for purchases of materials, stocks, or services on credit).
Receivables
- Accounts Receivable: A current asset account showing amounts payable to a firm by customers who have made purchases of goods and services on credit.
Financial Metrics
- Profit Margin: Difference between production cost & selling price.
- Gross Income: Income before deductions.
- Run at Loss: Making losses over a period of time.
General Ledger and Timeframes
- General Ledger: Book or PC file that contains all accounting information about the company.
- Long-Term: Accounts to be paid after 1 year.
Accounting Standards
Principles
- GAAP (Generally Accepted Accounting Principles)
Omnia Insomnia Ltd
London UK
14th March, 2013
Dear Madam,
I am writing to apply for the position of ------, you advertised in *El País* newspaper on 6th December.
As outlined in my curriculum vitae, I feel I am fully qualified for the post because I am currently studying for the second year at the university to be a Manager. As well as having a higher level at PC and speaking English, I am efficient, proactive, and organized. Also, I know how to motivate people and I can manage different tasks at the same time.
At present, I am employed as Secretary of a Commercial Manager, where I am responsible for the organization of meetings, making calls, and dealing with clients. My duties also include finding new business opportunities, and I am generally noted for my initiative and practical skills. Apart from that, I have excellent references from a previous employer.
I believe that I would be an ideal candidate for the position you have outlined. A job in your company would give me the opportunity to apply all the knowledge I am receiving at the University. I can assure you that I will do my best to fulfill your expectations.
I enclose a C.V. giving details on my experience and qualifications. If you need any further information, I can be contacted by email on [email protected] or mobile phone on 099 28 28 67.
I would be pleased to attend an interview at any time convenient to you.
Yours faithfully
I am writing to apply for the position of ------, you advertised in *El País* newspaper on 6th December.
As outlined in my curriculum vitae, I feel I am fully qualified for the post because I am currently studying for the second year at the university to be a Manager. As well as having a higher level at PC and speaking English, I am efficient, proactive, and organized. Also, I know how to motivate people and I can manage different tasks at the same time.
At present, I am employed as Secretary of a Commercial Manager, where I am responsible for the organization of meetings, making calls, and dealing with clients. My duties also include finding new business opportunities, and I am generally noted for my initiative and practical skills. Apart from that, I have excellent references from a previous employer.
I believe that I would be an ideal candidate for the position you have outlined. A job in your company would give me the opportunity to apply all the knowledge I am receiving at the University. I can assure you that I will do my best to fulfill your expectations.
I enclose a C.V. giving details on my experience and qualifications. If you need any further information, I can be contacted by email on [email protected] or mobile phone on 099 28 28 67.
I would be pleased to attend an interview at any time convenient to you.
Yours faithfully