entrepreneurship mr. bernstein financial record keeping, pp 428-436 december 12, 2014
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Entrepreneurship
Mr. Bernstein
Financial Record Keeping, pp 428-436
December 12, 2014
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EntrepreneurshipMr. Bernstein
Accounting SystemsBusinesses keep score
GAAP: Generally Accepted Accounting PrinciplesThe Accounting Equation: Assets = Liabilities + Owner’s Equity
Assets are anything of value (ie cash, equipment, accounts receivable)
Liabilities are anything the business owesOwner’s Equity is the net worth of the business
(Assets – Liabilities = Owner’s Equity)
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EntrepreneurshipMr. Bernstein
Accounting SystemsAccounting Procedures
Create accountsRecord entries into journalsUse cash basis or accrual basisPost to ledgers
Journals should be updated daily if not constantlyJournal entries should be posted to ledgers weekly or more often
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EntrepreneurshipMr. Bernstein
Examples of Accounts for JournalsSalesOffice SuppliesRentUtilitiesPurchasesPayrollDepreciation
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EntrepreneurshipMr. Bernstein
Examples of Accounts for Journals: Payroll Data
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