1 What is the Generally Accepted Accounting Principles (GAAP or generally accepted)?
Are the rules and laws that have been agreed upon registration catalog and the preparation of financial reports, issued by the Financial Accounting Standards Board (FASB), one of the most generally accepted accounting principles: the
principle of an interview income and expenses of the
principle of historical cost
principle of revenue recognition of the
principle of precaution, the
principle of disclosure the
principle of consistency
2 What is the way to know the account debtor from the account of the creditor?
In practical life, the debtor is a person who is in debt in favor of the secured creditor, either in accounting, there are two ways to specify the account debtor from the account of the creditor at the express limitation in the daily Journal: the
introduction of والعاطي :
This method assumes that the account debtor is the account which takes account of the account, it is the creditor who gives.
Determining the nature of the account
through this method accounts is divided into two sections, the accounts of the nature of the accounts of the nature of the creditor, and the person that saves the nature of the accounts of the city include the asset accounts and expenses and calculation of personal drawings, either accounts creditor nature include commitments and the calculation of the income account and the capital account, these accounts are the following: the
nature of the city: The accounts
recorded in the debtor party when increase, and are recorded in the creditor party when
its mostly lack the
relevant account debtor and creditor nature:
recorded in the debtor party when the shortage, and are recorded in the creditor party when
its mostly the creditor to increase
what is the difference between cash basis and ACCRUAL?
According to the cash basis, income is recognized when the catch value from others, as well as recognition of the expenses once paid to others whether such income or expenses for the current period or not of their own, either according to the accrual basis is the recognition of revenue in the period in which the sale of goods or the provision of the service to others, whether arrested or not worth the customer and arrests, and the recognition of expenses for the current period, whether paid or not paid.
4 What is the difference between the prepaid expenses and expenses owed?
Prepaid expenses: expenses that were paid during the current period, but belonging to the next financial period, therefore, according to the accrual basis, these expenses are excluded from the balance of the apparent expenses in the balance of the audit, this shows the account in the list of the Financial Center as a business asset.
Outstanding expenses: The expenses for the current period and not paid yet appear from within the balance of the expenses so consequently, according to the basis of the merit of بالمصروف is the recognition of this account shows in the list of the financial commitments.
What is the difference between the income received in advance and revenues owed?
Income received in advance: is the income that had been seized during the current period, but belonging to the Alma
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